May each of you have the heart to conceive, the understanding to direct, and the hand to execute works that will leave the world a little better for your having been here. -- Ronald Reagan

Thursday, September 17, 2009

Do Increased Soda Taxes Result in Lower BMI?

I mentioned in a earlier blog that Obama and the Dems want to have a specialty tax for soda, "sugared drinks". Part of ObamaCare. I know, I'm a racist for criticizing a stupid idea coming from the Bamster, but I have this crazy idea about actually having some data to support implementation of policies. You know, see if the theory works in reality. I know, it's a crazy idea since I'm uneducated (why else would I be a terrorist racist teabagger?)... oops there's that nasty BS in Social Science, how the heck did that happen?

Anyway, here's some data. (We learned to do this in various social science classes.) The theory is that increased taxes on sugared drinks will lower consumption. Does it work?

Consumption of soda is up 500% per capita the past 50 years (Dept of Agriculture). That's about 7% of our intake of this stuff. Plus, I hear it's great for cleaning toilets, car batteries, all kinds of other useful things too. There are 33 states that have the soda tax. Five of the most obese states have the soda tax (CDC). The three least obese states have no soda tax.

Soon to be published "Can Soft Drink Taxes Reduce Population Weight?" (which will be published in Contemporary Economic Policy), here are some findings. One percent tax increase causes a drop of 0.003 points in BMI. Play that out and a huge 20% increase would have just a little bit more than a ittsy bitsy drop in BMI.

Of course, potato chips can make you fat. One percent tax increase equals about 42 calories in reduced consumption. Twenty percent, still not so much. Of course, when any government tries to control behavior through taxes, people just alter their behavior. There's always a work around. Kids could drink milk. Low fat content there. Maybe increase ice cream consumption?

So far the data doesn't support the theory. A little more honesty could be used here. The food police, Obama, the Dems, the Statists, could just say, "Hey, we just want your money so we can reduce your liberty. We're not really interested in reducing obesity. Are you nuts?"

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