NUT226 Nutrition and Food Policy Seminar, Fall 2007 Rebecca Lundin

1. Food Taxes in Europe and the United States: Riots, Campaign Contributions, and Legislative Roller Coasters Caraher M, Cowburn G. Taxing food: Implications for public health nutrition. Pub Health Nutr 2005;8(8):1242-49. Kim D, Kawachi I. Food taxation and pricing strategies to “thin out” the obesity epidemic. Am J Prev Med 2006;30(5):430-7 NUT226 Nutrition and Food Policy Seminar, Fall 2007 Rebecca Lundin

2. Why Tax Food? – the Ugly • Obesity epidemics in Europe and the US • 1/3 American adults obese • Obese adults’ RR all cause mortality = 1.5-2 • Fast food and soft drinks linked to obesity • Parallel trends: increases in consumption • Longitudinal studies: children and young adults • Obesity is a HUGE cost to society • Est. 2000 costs in US of $117 BILLION • Strain on healthcare system, labor market • Caraher and Cowburn do not provide enough support for their rational!

3. Why Tax Food? – the Bad • Why not just focus on individual level interventions? • Data on failure of individual level interventions to stem the tide of obesity? Gap in articles! • Info bias: more spent on fast food advertising than healthy food advertising ($3.2 billion for fast food vs. $1-2 million for 5-a-day)

4. Why Tax Food? – the Good • Evidence of soft drink tax benefits • 1990: states with NO soft drink tax 4.2X more likely to have > 75th percentile relative increase in obesity prevalence • Economic analysis shows cigarette smokers ‘pay their way’ through the medical system with excise taxes – why can’t obese?

5. Why Tax Food? – Where does this fit? • Price Elasticity of snack foods • Stratified random US sample showed stable demand for chips and salty snacks even with 20% tax increase – INELASTIC DEMAND • The Good – stable income from food tax • The Bad – no influence on purchasing habits

6. Can We Tax Food? – the Ugly • Special interest groups, money, power • GMA testified before senate on repressiveness and discriminatory nature of snack food taxes • GMA contributed $0.7 mill to Democrats and $2.4 mill to Republicans in 2003-2004 • Is anyone testifying/lobbying FOR food taxes or subsidies to improve health?

7. Can We Tax Food? – the Bad • Historically, food taxes poorly received • Riots, ‘mob-like behavior’ • Food taxes still poorly received today • 2001 US survey showed 6% strongly agree and 27% agree with snack food tax to subsidize healthy foods – 65% agree with cigarette taxation! • Maine and D.C. snack food taxes quickly repealed • C&C evidence from Europe??? • Research to determine WHY food taxation is so poorly received??

8. Can We Tax Food? – the Good?? • Cigarette taxation was slow to catch on • Policy has been and is being implemented (and evaluated) in Europe and the US • Where do considerations of individual rights fall? Libertarian ideals vs. costs to society/social responsibility/social justice??

9. How to Tax Food? • Population approaches • Federal or statewide taxes • Captures entire population – Does it? • High risk approaches • Special group taxes and policies • ‘captive audience’ • Children and sedentary workers have more need (?) • May be easier to gain public approval – Why?

10. How to Tax Food? • Current Range of Approaches • Raising general GDP with general taxes (VAT, GST) • Taxing certain foods to raise $ for obesity prevention initiatives • Taxing certain foods BOTH to raise $ for obesity prevention initiatives and affect individual purchase and consumption patterns • Taxing certain foods to affect individual purchase and consumption patterns • New/Future Approaches??? • This is where WE come in • Food tax revenues to subsidize healthier foods? • Taxing manufacturers? • Reducing subsidies for foods that are highly subsidized and used in high fat/energy dense/high sugar/high salt foods?

11. Thank you! Questions? Ideas?