On the Proposed Soda Tax
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A very hasty stitch about the (entirely proper) furor over the American Medical Association proposal to impose a "fat tax" on corn syrup used in soft drinks.
In New York State, and I suspect in most other states, soda does not enjoy the sales tax exemption afforded to food generally. It is taxed apart from all other food (except alcohol).
Fruit juices are exempt from the sales tax, flavored (i.e., sweetened) fruit drinks are exempt, milk is exempt, even chocolate milk is exempt.
But not soda -- not even diet soda.
And while we're on the subject: candy bars, cakes, cookies, potato chips, pies, ice cream and sugared cereals are all exempt from New York State sales tax.
But not soda -- not even diet soda.
So let's stop pretending that politicians are at all capable of crafting a rational policy of what to "fat tax" and what to exempt. It will all reduce down to the syrupy goo of the Politics of Pull, flavored with the Politics of the Warm Fuzzy Feeling.
There is only one rational food tax policy: no food tax at all.
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The proposed tax would be one cent per can. Yet how much would it cost to set up and perpetually administer the tax? Would it be closer to one cent per can than to zero? Does it make sense to impose a tax that costs as much as it collects? (The sad part is that many bureaucrats and nanny-statists would probably answer "yes.")
In New York State, and I suspect in most other states, soda does not enjoy the sales tax exemption afforded to food generally. It is taxed apart from all other food (except alcohol).
Fruit juices are exempt from the sales tax, flavored (i.e., sweetened) fruit drinks are exempt, milk is exempt, even chocolate milk is exempt.
But not soda -- not even diet soda.
And while we're on the subject: candy bars, cakes, cookies, potato chips, pies, ice cream and sugared cereals are all exempt from New York State sales tax.
But not soda -- not even diet soda.
So let's stop pretending that politicians are at all capable of crafting a rational policy of what to "fat tax" and what to exempt. It will all reduce down to the syrupy goo of the Politics of Pull, flavored with the Politics of the Warm Fuzzy Feeling.
There is only one rational food tax policy: no food tax at all.
---
The proposed tax would be one cent per can. Yet how much would it cost to set up and perpetually administer the tax? Would it be closer to one cent per can than to zero? Does it make sense to impose a tax that costs as much as it collects? (The sad part is that many bureaucrats and nanny-statists would probably answer "yes.")
Posted by Kip on
12 June 2006
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