Cato — Patrick Basham: Tax on sugary soft drinks


In an op-ed on the Cato Institute site here, Patrick Basham writes:

A sugar tax also has undesirable social and economic consequences. This tax is economically regressive, as a disproportionate share of the tax is paid by low earners, who pay a higher proportion of their incomes in sales tax and also consume a disproportionate share of sugary snacks and drinks.

Patrick, please explain why a regressive tax is socially and economically undesirable. It is paid by those who consume the product, rather than being a transfer of wealth from one group to another. Even better, a regressive tax encourages a majority to vote against increased government intrusiveness.

Think about it.


Tags: , , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: