Amid the arguments over how to pay for healthcare reform comes an old idea in a new package: taxing fatty foods.
A study released by the Urban Institute and the University of Virginia has caught some lawmakers’ attention, mainly because the study revealed a tax goldmine for funding health care. For example, the study shows over the next 10 years:
- A 10% excise or sales tax on fattening foods could raise $522 billion.
- A 20% tax could raise $937 billion.
Not surprisingly, industry groups strongly oppose the idea.
An organization called Americans Against Food Taxes — supported by, among others, the National Restaurant Association, the American Beverage Association and the National Grocers Association — argues that such taxes are unfair and unneeded.
The Urban Institute study points out that not only would fat-food taxes raise money, but they also would discourage consumption of unhealthy foods.
Industry groups aren’t crazy about that prospect, either.