Sugar Tax Considered While Sugar Subsidies Persist

The classic government-creates-problem-government-propses-solution-that-causes-more-problems paradigm is hard at work. How will we ever solve obesity in the USA?! Let’s ban what can be sold at bake sales, and force kids to take food at school that they will throw away.

Almost $85 billion has been handed out in corn subsidies just in the past 20 years. And what is the highly concentrated sugar syrup packed into drinks and snacks partially blamed for the obesity epidemic? Corn syrup. And why is corn syrup so “cheap” to use? Because we already paid for it up front by force with tax dollars, dropping the shelf price, making corn syrup infused products cheaper by comparison to healthier options.

Yet somehow we never talk about the fact that simply removing corn subsidies would be a great first step towards combatting this weight issue, and would save taxpayers dollars at the same time. There is no negative; unless of course you are one of the cronies who receives the corn subsidy. Bon Jovi is reportedly one of the “struggling farmers” receiving a corn subsidy from the federal government.

And now, congress is talking about raising taxes on sugar in order to raise the price of sugary products to serve as a disincentive to buy them. But guess what, the price of sugary products would rise on there own if the government would stop subsidizing sugar producers as well!

Rep. Rosa DeLauro (D-Conn.) introduced this week the Sugar-Sweetened Beverages Tax (SWEET Act), which aims to institute a tax of one cent per teaspoon – 4.2 grams – of sugar, high fructose corn syrup or caloric sweetener.

the text of the bill itself notes that the goal is to reduce public consumption through a price increase.

There is a net transfer of at least $1 billion annually from taxpayers to sugar producers, lowering the shelf price of sugary products. If the government would just get out of the economy, we would pay fewer taxes, and have an incentive to buy healthier foods, because they would be more reasonably priced than the unhealthy, government subsidized foods. This is what government solutions look like.

2 thoughts on “Sugar Tax Considered While Sugar Subsidies Persist

  1. Pingback: Listen to Joe Jarvis on “Under the Gun” | Joe Jarvis

  2. Pingback: Emails: Debating Limited versus No Government | Joe Jarvis

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