Peculiarities of Soda Tax in the US - Essay Example

Americans are already used to sin taxes because such taxes have been prevailing for a very long time. Sin taxes are usually placed on cigarettes or alcohol. The government, therefore, should levy lefty taxes on soda because it will help in enhancing public revenues as well as dissuade people from drinking soda, which is a health hazard.

Levying a higher tax on beverages like soda will fetch many advantages to the American society and most of the citizens will welcome such a measure. Kelly D. Brownell, based on “poll results contend that support of a tax on sugared beverages ranges from 37 to 72%” and the pole results from New York residents found that 52% supported a “soda tax,” but the number rose to 72% when respondents were told that the revenue would be used for obesity prevention” (Brownell). This shows that most of the American people recognize the positive effects tax on soda can bring to American society in general.

Since a major portion of American people, America consume large amounts of soda every day, the tax would help to bring in considerable sums of revenue for the government to pay off its debt. Soda is a popular drink that many people drink every day and many people are even addicted to the caffeine in it. Dr. Brownell further argues that “given the heavy consumption of sugared beverages, even small taxes will generate substantial revenue, but only heftier taxes will significantly reduce consumption” (Brownell). The government embarks on the introduction of such a policy, it will be able to generate some substantial revenue and this will help in making good the deficit and utilize the additional income for the development of all activities. Eliminating the fiscal deficit will not only be advantageous to the government but also to the public as a whole because the revenues that accrue as a result of additional taxes be utilized for public health campaigns to counter the measure of obesity.

However, despite the benefits that can be derived from heavier taxes o soda, many people tend to object to this idea. They believe that a soda tax is not good to measure to raise funds or check obesity. They further contend that levying a higher soda tax will not discourage people from drinking sugared beverages. However, this condition does not hold any solid logic because when a person has to pay a higher price for a product, the consumption will reduce. According to Veronique de Rugy, “the story sounds plausible. The trouble is that sin taxes don’t appreciate human creativity: Consumers have a knack for replacing one sin with another. When the price of a “sinful” good increases, people often substitute an equally “bad” good in its place” (Rugy). On the other hand, some other people argue that when the tax on soda increases, people will look for other cheaper alternatives for their indulgence, and thus obesity cannot be checked merely by.

On the other hand, some people say that if the soda tax will not help the economy.

Editor Rugy says “if the tax is effective at discouraging soda consumption, it won’t raise much money because people won’t be buying soda” (Rugy). So, if the government does not make any money legislatures should not have taxed the American people in the first place.

There is no denial of the fact that Americans need to be healthier and the economy needs to be stronger. so the soda tax is a good way to get results. Thus, additional tax on a solution though everyone agrees with the method. Many and some people will still buy soda. But in the end, the soda even after the tax is hiked tax will make a difference in America even if it is small. However, this argument does not seem to be based on sound logic, as many people will still drink soda, despite cost escalation.