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 Obesity epidemics in Europe and the US 1/3 American adults obese 1/3 American adults obese Obese adults’ RR all cause mortality = 1.5-2 Obese adults’ RR all cause mortality = 1.5-2 Fast food and soft drinks linked to obesity Fast food and soft drinks linked to obesity Parallel trends: increases in consumption Parallel trends: increases in consumption Longitudinal studies: children and young adults Longitudinal studies: children and young adults Obesity is a HUGE cost to society Obesity is a HUGE cost to society Est. 2000 costs in US of $117 BILLION Est. 2000 costs in US of $117 BILLION Strain on healthcare system, labor market Strain on healthcare system, labor market Caraher and Cowburn do not provide enough support for their rational! 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? Why not just focus on individual level interventions? Data on failure of individual level interventions to stem the tide of obesity? Gap in articles! 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) 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 Evidence of soft drink tax benefits 1990: states with NO soft drink tax 4.2X more likely to have > 75 th percentile relative increase in obesity prevalence 1990: states with NO soft drink tax 4.2X more likely to have > 75 th 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? 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 Price Elasticity of snack foods Stratified random US sample showed stable demand for chips and salty snacks even with 20% tax increase – INELASTIC DEMAND 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 Good – stable income from food tax The Bad – no influence on purchasing habits The Bad – no influence on purchasing habits

6. Can We Tax Food? – the Ugly Special interest groups, money, power Special interest groups, money, power GMA testified before senate on repressiveness and discriminatory nature of snack food taxes 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 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? Is anyone testifying/lobbying FOR food taxes or subsidies to improve health?

7. Can We Tax Food? – the Bad Historically, food taxes poorly received Historically, food taxes poorly received Riots, ‘mob-like behavior’ Riots, ‘mob-like behavior’ Food taxes still poorly received today 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! 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 Maine and D.C. snack food taxes quickly repealed C&C evidence from Europe??? C&C evidence from Europe??? Research to determine WHY food taxation is so poorly received?? Research to determine WHY food taxation is so poorly received??

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

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

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