Fat tax would benefit Kiwis – study

This article is about a study that took place in New Zealand. The government put a higher tax on fattier foods in order to encourage healthier eating habits. Residents of New Zealand feel that unhealthy eating habits, especially in sugary drinks have become more prominent than tobacco use, therefore, leading them to want to make extreme decisions in order to make New Zealand healthier.

2 Comments »

  1. Katie Nirenberg Said,

    October 3, 2013 @ 1:21 am

    I think this article is a great real-world example of what we are learning in our current chapter on taxes. It not only explains the effects that decreasing the price of healthy foods or increasing the price of unhealthy foods would have on purchasing habits but it also includes real debates about whether or not to act on the research. Although the items are elastic enough for taxes to enact change, people are hesitant to add the taxes because of who it would affect. I think this offers a more realistic example than we do in class or that is in the book.

  2. blackta Said,

    November 5, 2013 @ 4:52 am

    I found this article very interesting because it discussed just how complex setting a price for the market can be. A tax obviously influences behaviors, but these officials are looking more in depth than that–they are targeting the healthy or the unhealthy, the rich or the poor. It is a complicated process, and some of the other concepts we have discussed in class, such as shortages and who bears the burden of the tax, were also touched upon in a real world application which was very useful.

RSS feed for comments on this post · TrackBack URI

Leave a Comment