Sunday, July 24, 2011

Tax Bad Food, Subsidize Fruits and Vegetables

The obesity epidemic can be conquered, the health crises that go with it, and best of all, we can make huge inroads in government budget deficits, all while doing the right thing.



So impressively effective, it hardly sounds like an American program anymore.

Bad Food? Tax It, and Subsidize Vegetables


WHAT will it take to get Americans to change our eating habits? The need is indisputable, since heart disease, diabetes and cancer are all in large part caused by the Standard American Diet. (Yes, it’s SAD.)
Though experts increasingly recommend a diet high in plants and low in animal products and processed foods, ours is quite the opposite, and there’s little disagreement that changing it could improve our health and save tens of millions of lives.

And — not inconsequential during the current struggle over deficits and spending — a sane diet could save tens if not hundreds of billions of dollars in health care costs.

Yet the food industry appears incapable of marketing healthier foods. And whether its leaders are confused or just stalling doesn’t matter, because the fixes are not really their problem. Their mission is not public health but profit, so they’ll continue to sell the health-damaging food that’s most profitable, until the market or another force skews things otherwise. That “other force” should be the federal government, fulfilling its role as an agent of the public good and establishing a bold national fix.

Rather than subsidizing the production of unhealthful foods, we should turn the tables and tax things like soda, French fries, doughnuts and hyperprocessed snacks. The resulting income should be earmarked for a program that encourages a sound diet for Americans by making healthy food more affordable and widely available.

The average American consumes 44.7 gallons of soft drinks annually. (Although that includes diet sodas, it does not include noncarbonated sweetened beverages, which add up to at least 17 gallons a person per year.) Sweetened drinks could be taxed at 2 cents per ounce, so a six-pack of Pepsi would cost $1.44 more than it does now. An equivalent tax on fries might be 50 cents per serving; a quarter extra for a doughnut. (We have experts who can figure out how “bad” a food should be to qualify, and what the rate should be; right now they’re busy calculating ethanol subsidies. Diet sodas would not be taxed.)

This program would, of course, upset the processed food industry. Oh well. It would also bug those who might resent paying more for soda and chips and argue that their right to eat whatever they wanted was being breached. But public health is the role of the government, and our diet is right up there with any other public responsibility you can name, from water treatment to mass transit.

Justifying a Tax

At least 30 cities and states have considered taxes on soda or all sugar-sweetened beverages, and they’re a logical target: of the 278 additional calories Americans on average consumed per day between 1977 and 2001, more than 40 percent came from soda, “fruit” drinks, mixes like Kool-Aid and Crystal Light, and beverages like Red Bull, Gatorade and dubious offerings like Vitamin Water, which contains half as much sugar as Coke.

Currently, instead of taxing sodas and other unhealthful food, we subsidize them (with, I might note, tax dollars!). Direct subsidies to farmers for crops like corn (used, for example, to make now-ubiquitous high-fructose corn syrup) and soybeans (vegetable oil) keep the prices of many unhealthful foods and beverages artificially low. There are indirect subsidies as well, because prices of junk foods don’t reflect the costs of repairing our health and the environment.

Other countries are considering or have already started programs to tax foods with negative effects on health. Denmark’s saturated-fat tax is going into effect Oct. 1, and Romania passed (and then un-passed) something similar; earlier this month, a French minister raised the idea of tripling the value added tax on soda. Meanwhile, Hungary is proposing a new tax on foods with “too much” sugar, salt or fat, while increasing taxes on liquor and soft drinks, all to pay for state-financed health care; and Brazil’s Fome Zero (Zero Hunger) program features subsidized produce markets and state-sponsored low-cost restaurants.

Putting all of those elements together could create a national program that would make progress on a half-dozen problems at once — disease, budget, health care, environment, food access and more — while paying for itself. The benefits are staggering, and though it would take a level of political will that’s rarely seen, it’s hardly a moonshot.

Government and Public Health

Health-related obesity costs are projected to reach $344 billion by 2018 — with roughly 60 percent of that cost borne by the federal government. For a precedent in attacking this problem, look at the action government took in the case of tobacco.

The historic 1998 tobacco settlement, in which the states settled health-related lawsuits against tobacco companies, and the companies agreed to curtail marketing and finance antismoking efforts, was far from perfect, but consider the results. More than half of all Americans who once smoked have quit and smoking rates are about half of what they were in the 1960s.
Read more at www.nytimes.com
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