A major sticking point in the health care reform debates is funding. Many senators and congressional .jpg)
representatives are concerned about where the estimated trillion dollars deemed necessary for the renovation of our health care system will come from. One potential solution being discussed is the taxation of unhealthy items including fattening foods, soft drinks and alcohol.
A coalition of businesses, non-profits, and government agencies known as the Partnership for Prevention is urging the House of Representatives to include an alcohol tax hike in its health care bill. They suggest the money generated by a higher federal excise tax on alcoholic beverages should go into a special fund that would pay for prevention and wellness programs. (Source: www.cnsnews.com)
Partnership for Prevention President Robert J. Gould argues that federal alcohol excise taxes were last raised in 1991 and have not kept pace with inflation. A 20 percent tax hike on distilled spirits and equalizing the tax rates on other alcoholic beverages would provide $60 billion in new revenue over a decade.
The Center for Science in the Public Interest (CSPI) is also campaigning for a tax on alcohol. They argue that the economic costs of alcohol use in the U.S., more than $185 billion per year, far exceeds federal tax revenues from alcohol, which totaled only $9.2 billion in 2007.
CSPI goes on to state that higher taxes on alcoholic beverages will help moderate alcohol consumption, even among heavier drinkers, leading to fewer alcohol-related problems and costs throughout society. According to CSPI, raising liquor taxes 50 percent and equalizing taxes on alcohol in beer and wine would raise $100 billion in revenue over 10 years.
CSPI also argues for a tax on soft drinks. which have been directly linked to obesity. Americans spend roughly $100 billion a year on medical expenditures related to obesity, of which half is paid with Medicare and Medicaid dollars. A tax of 12 cents per 12 ounces would raise $160 billion over 10 years, CSPI claims.
A tax on fattening foods is also being considered. A study released Monday by the Urban Institute and the University of Virginia found that a 10% excise or sales tax on fattening foods could raise $522 billion over the next 10 years. A 20% tax could raise $937 billion. This money could be used to defray the costs of health care reform or curb the rise in obesity, according to the study.
Unfortunately there are limitations to these types of tax plans. Unlike tobacco, it is difficult to pinpoint what exactly are “unhealthy” items. Certain foods may be classified as fattening by one group and not another. Some studies show that moderate amounts of alcohol may be beneficial to health. Will soft drinks include all beverages containing sugar?
While the concept of taxing unhealthy items may be noble, the number of potential roadblocks may prevent these types of proposals from being seriously considered.
Did you like this article? Below are other articles from the Milwaukee Health Examiner:
Comments