Taxing Sweets: Sweetener Input Tax or Final Consumption Tax?

Zhen Miao, John Beghin () and Helen Jensen

No 61511, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: In order to reduce obesity and associated costs, policymakers are considering various policies, including taxes, to change consumers’ high-calorie consumption habits. We investigate two sweet tax policies aimed at reducing added sweetener consumption. Both a consumption tax on sweet goods and a sweetener input tax can reach the same policy target of reducing added sweetener consumption. Both tax instruments are regressive but the associated surplus losses are limited. The tax on sweetener inputs targets sweeteners directly and causes about five times less surplus loss than the final consumption tax. Previous analyzes have overlooked this important point.

Keywords: Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Health Economics and Policy (search for similar items in EconPapers)
Pages: 41
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://ageconsearch.umn.edu/record/61511/files/2010AAEA.pdf (application/pdf)

Related works:
Journal Article: TAXING SWEETS: SWEETENER INPUT TAX OR FINAL CONSUMPTION TAX? (2012)
Working Paper: Taxing sweets: sweetener input tax or final consumption tax? (2012)
Working Paper: Taxing Sweets: Sweetener Input Tax or Final Consumption Tax? (2011)
Working Paper: Taxing Sweets: Sweetener Input Tax or Final Consumption Tax? (2010)
Working Paper: Taxing Sweets: Sweetener Input Tax or Final Consumption Tax? (2010)
Working Paper: Taxing sweets: sweetener input tax or final consumption tax? (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61511

DOI: 10.22004/ag.econ.61511

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