anonymous
  • anonymous
what are the advantages of taxing foods?
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schrodinger
  • schrodinger
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anonymous
  • anonymous
I think taxing foods decrease consumer surplus. only supplier surplus. foods tax is supplier both profit and firmtax.
anonymous
  • anonymous
Butalso foods quality is high.
anonymous
  • anonymous
A tax on food raises the price. If applied to certain foods, for example fancy wines, wealthy consumers will probably still buy the wine at an appreciable quantity to make the tax useful to government, while targeting the people with the ability to fund whatever government projects. But I don't think specialized tax effects was the intended question. A higher price on food across the board reduces consumption, while the producers continue to sell at the same price (they don't receive the tax money, while consumer is affected by it). this reduced demand, leads to a reduction in supply by producers. This situation can lead to a favored substitution with whatever good the government thinks should be purchased, due to lower relative price.

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anonymous
  • anonymous
Taxing on food (junk) is aimed to reduce the consumption of such food .and this is supposed to result in healthier eating habits. Suppose in a city the consumption of burgers is very high and the same city is suffering from high obesity, heart disease etc..Now health analyst found that consumption of burgers is the reason behind substantial increase in obesity , heart disease and other health issues. The health issues have to be dealt with by taking some measures: both preventive and curative . And one of the preventive measure that is taken is taxing burger and the ingredients that into making that burger. P.S Health economist are always on the lookout for consumption trends and health outcomes.

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