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Sunday, October 31, 2004

USDA on Taxing Snack Food

The Economics Research Service of the U.S. Department of Agriculture has published Taxing Snack Foods: What to Expect for Diet and Tax Revenues. Here is the abstract:

Health researchers and health policy advocates have proposed levying excise taxes on snack foods as a possible way to address the growing prevalence of obesity and overweight in the United States. Some proposals suggest higher prices alone will change consumers' diets. Others claim that change will be possible if earmarked taxes are used to fund an information program. This research examines the potential impact of excise taxes on snack foods, using baseline data from a household survey of food purchases. To illustrate likely impacts, we examine how much salty snack purchases might be reduced under varying excise tax rates and possible consumer price responses. We find that relatively low tax rates of 1 cent per pound and 1 percent of value would not appreciably alter consumption—and, thus, would have little effect on diet quality or health outcomes—but would generate $40-$100 million in tax revenues.

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Listed below are links to weblogs that reference USDA on Taxing Snack Food:

» Shedding light on the "snack tax" from U.S. Food Policy
I see that the USDA/ERS report on "snack taxes" was picked up by a tax law weblog this Fall. Kudos to authors Fred Kuchler, Abebayehu Tegegne, and Michael Harris at USDA's Economic Research Service for shedding some light on this issue. Various forms o... [Read More]

Tracked on Dec 20, 2004 7:12:19 PM

» Shedding light on the "snack tax" from U.S. Food Policy
I see that the USDA/ERS report on "snack taxes" was picked up by a tax law weblog this Fall. Kudos to authors Fred Kuchler, Abebayehu Tegegne, and Michael Harris at USDA's Economic Research Service for shedding some light on this issue. Various forms o... [Read More]

Tracked on Dec 20, 2004 7:13:23 PM

Comments

Nowhere in the article is "snack" food defined. My local Fresh Fields has an abundance of "snacks" that are actually healthy for you. Do those get taxed? Government taxing us to eat - oh what fun. Just proves that the government is an out-of-control revenue hungry beast.

Posted by: Mcwop | Oct 31, 2004 5:56:31 AM

Today I went into a SuperWalmart store to by some turnovers from their bakery department. They tried to tax me for the item. I was under the impression that food was not to be tax. I thought this was a gaurantee from the earliest times of our nations foundation. Am I wrong? Jim

Posted by: Jim Johnson | Aug 6, 2006 8:31:54 AM