The Greens soft drinks tax: illiberal, ineffective, regressive

Yesterday the Greens announced an illiberal, ineffective and regressive nanny state tax on sugary drinks.

I argued in The Spectator Australia’s Flat White blog against the new impost:

Taxing soft drinks, using the coercive power of the state to manipulate individual behaviour, is patently paternalistic.  The policy treats parents as fools who are unable to raise their own children, and adults as mugs incapable of making their own consumption decisions.

It would also prove ineffective at addressing obesity issues:

Although increasing the cost of soft drinks may reduce their consumption, it does little to change overall dietary decisions. If we make one product more expensive, individuals looking for a sugar hit can, and will, swap to other unhealthy drinks and food.

However perhaps the bigger injustice is who it will impact the most, the poor:

A study of French dietary habitspublished in the American Journal of Agricultural Economics found that fat taxes are “extremely regressive”. That is, they have a far bigger impact on lower income households who have the least capacity to pay for the additional impost.

Read the full post here.

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