Such a tax might encourage consumers to live healthier lives. Fast food, known as junk food, is just like how people name it.Fast food is popular because it serving filling foods that taste good and doesn’t cost a lot of money.
If the price of unhealthy food were brought up to match or exceed the price of healthier alternatives, people who use the money generated by fast food purchases to subsidize the prices of healthy food, such as fruits, vegetables and fresh fish.
By making the unhealthy food more expensive, healthy food will be cheaper in comparison, which would result in an increasing number of people choosing healthy food.
Unfortunately, Americans have become dependent on fast food dining even though they know it has negative effects.
One way to make people to choose healthier food is to raise the tax on fast food.
Increasing the price of fast foods can affect people’s behavior, and steer them toward healthier diets, lower weight and less risk of diabetes.
Since “Sin tax" is already widely applied to many substances, such as alcohol and tobacco, and it was successful in the case of smoking cessation efforts, it could also be helpful on fast food.
Denmark, Finland, France, Hungary, and Mexico have such taxes. Celebrity chef Jamie Oliver is waging a high-profile campaign to get Britain to tax sugar, and the Many nutrients and ingredients have been suggested as possible targets for taxes, including fat, saturated fat, salt, artificial sweeteners, and caffeine.
Our sense, though, is that only sugar might be a plausible candidate.
If you are trying to discourage something harmful, taxes work best when there is a tight relationship between the “dose” that gets taxed and the “response” of concern.
Taxes on cigarettes and carbon are well-targeted given tight links to lung cancer and climate change, respectively.