Obesity is a rising problem in America and is blamed for externalities such as increasing health care costs. Some have proposed taxes on “unhealthy” foods so as to internalize the externalities and to generate revenue to subsidize “healthy” foods. I examine several such proposals and conclude that taxes based on perceived externalities from the obese are not the best options. Other solutions such as increasing awareness and nutritional programs would be better.
Major Themes in Economics
©2010 by Major Themes in Economics
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"Can the ‘Fat Tax’ Carry its Weight?,"
Major Themes in Economics, 12, 47-69.
Available at: https://scholarworks.uni.edu/mtie/vol12/iss1/5