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Tax Junk Science, Not Junk Food

Posted: 05/18/2012 2:12 pm

I just finished reading the press release of a paper published last Tuesday in the British Medical Journal advocating taxing junk food -- you know the stuff, sugary drinks, chips, candy bars, burgers -- by at least 20 per cent if we want to reduce obesity rates. The authors at the Department of Public Health at Oxford University, also advocate subsidizing the good stuff such as fruits and vegetables.

Not to disparage such a prestigious institution, much of the media have jumped on this study because the paper has supposedly found a causal link between taxing "junk food" and a reduction in obesity, a modest reduction mind you, but a reduction nonetheless. This same topic was covered in the Globe and Mail. News flash: this is really old news. A number of studies published over the last decade in the US have found the same results.

Here's another news item: A number of studies, of similar prestigious pedigree, have also found no link between taxing junk foods and obesity levels as measured by mass body index. Now let me ask you, do you think those studies would have enjoyed the same news coverage regardless of how well they were researched? News is only made when the results seem to fit the politically acceptable storyline. In the literature this is called 'white hat' bias, and it's common in health and environmental studies. The more politically cememted the research finding, the higher the chances these studies will be published and reported.

The problem with most studies that try to estimate the impact of price increases on the level of junk food we consume is that they're based on 'price elasticities' or how demand responds to changes in price. And that's what they are, estimates, so any results in a way are self-fulfilling and often based on simulated modeling. Increase the price of a product, demand falls and you come to the conclusion that less junk food intake leads to lower levels of consumption and hence, higher and more sustained obesity rates.

Another problem is that many of these studies make the false analogy with tobacco. They assume that high taxes on tobacco led to the decline in smoking. I won't deny taxes had an impact, but rates of cigarette smoking started declining in the mid-1960s long before taxes took hold. Besides, taxing one product such as tobacco is far different than taxing a limitless range of food products where people have almost an unlimited chance to substitute one product for another.

But even with sugary drinks people have been cutting back without taxation. On a per capita basis, Canadians consumed 82.14 litres of carbonated soft drinks in 2010. This represented a 30 per cent decline from 1999, when consumption was 117 litres per person, according to Statistics Canada. A lot of people are switching to water, bottled water mind you, but water nonetheless.

The BMJ study also gives the impression that economists are in agreement that taxes are an effective way to bring down obesity. Not so. In a sample survey of 120 economists who were members of the American Economic Association, 60.8 per cent disagreed with a tax on unhealthy foods (which included sugary beverages), 14.6 per cent were neutral and 24.6 per cent agreed. This skepticism probably arises in part because such a tax would be extremely difficult to craft. In that event, the unintended consequences may end up creating problems with a misallocation of resources.

Many studies underestimate the difficulty of using incentives such as taxation as a way to change behavior. There are millions of adults throughout North America who are on some sort of diet spending billions of dollars trying to lose weight. And most dieters are highly motivated. What makes one think that adding a few cents to a can of soda will be more effective?

The authors of the BMJ study hope that taxes raised on junk food will be allocated to anti-obesity programs, a wish shared by many groups advocating similar solutions. Governments, however, are loath to dedicate tax revenues to specific programs. This means, in the end, all taxes end up in general revenues.

But don't surveys tell us that people want to tax junk food as a way to encourage healthy eating? That's what people tell us when nothing is at stake. But try raising taxes and people have a way of changing their minds as they did in New York State recently when a modest tax on soft drinks was proposed and quickly rejected.

If we've learned anything about obesity over the last couple of decades it is that getting rid of weight and keeping it off is one of the hardest things most of us will ever do. We are just now getting a sense of how our hormones operate and often undermine our best intentions.

So what works? To be blunt, we don't have many answers. When it comes to kids there's no substitute for good parenting. Consider that one proven predictor of whether kids will become fat is tooth brushing. Not that clean teeth keep you thin, but it indicates that parents making good choices for their children lends the best hope for a healthy society.

We also know that simplistic top-down approaches such as taxation or public announcements telling us to exercise and eat our vegetables don't work. The obese and overweight get that way for many reasons and that's why more nuanced solutions are needed. What we don't need are studies that cover the same ground leading nowhere. Here's an idea. Rather than taxing junk food, we might want to consider taxing junk science.

Patrick Luciani is the co-author, with Neil Seeman, of "XXL: Obesity and the Limits of Shame," published by University of Toronto Press . The book was a finalist for the 2011 Donner Book Prize for the best book in public policy.

 
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01:50 PM on 05/20/2012
It's not a matter of altering people's behavior, it's about giving people the chance to make the choice. If we tax junk food more and use the money to subsidize healthier food then at least those of us who in the lower class actually have the choice to buy healthier food. And this is a moral imperative.

There are people who want to eat well and aren't able to because they can't afford it. If people want to eat potato chips, drink pop, bacon, macdonalds or whatever, that's their business. But, people shouldn't be forced to eat that junk if they don't want to.

We have the ability and resources to make healthy food available to all classes, not just the middle and above. The way we can do this is by taxing junk food and using that money to subsidize organic farms. Will it change behavior and stop people from eating junk food? No, and that wouldn't even be the point. We don't even want to stop people from eating junk food. We simply want the healthy options to not be overpriced and unaffordable.
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albertarick
These are questions for wise men with skinny arms
09:19 AM on 05/20/2012
How about taxing junk journalism? Instead of taxing people who actually study science, punishing those who skew the information to promote their own interests should be a given.
HUFFPOST SUPER USER
Skookum1
truth can't be bought, but lies sure can be sold..
12:55 AM on 05/20/2012
Where do you find these turkeys? There's lots of other ideas about junk food consumption than just someone obsessing about taxes....

"Rather than taxing junk food, we might want to consider taxing junk science. "

Why not tax junk advertising that pushes junk foods. Taxing junk journalism on the subject might be a good idea, too.

Junk food keeps the costs of health services high as well as causes individual suffering, even though those suffering can't break the vicious habits sold to them by advertising companies and agribusiness. Taxation levers are nothing in comparison to health and diet education and restoring physical education and the like to schools, instead of treating them as ancillary services that are "frills". With the junk food industry having long ago pushed the family dinner to the curb, deliberately, it's their responsibility to see that those eating their foods are not fed junk, but are eating actually well and properly.

Babbling about taxes and "junk science" is just junk journalism by comparison
This comment has been removed.
07:31 PM on 05/19/2012
Then there's salt
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HUFFPOST SUPER USER
Watson Richardson
12:21 PM on 05/19/2012
Anyone with a nutritional clue knows that the enemy is SUGAR and No Exercise. Sugar is the cause of all our problems, really it is, regardless of what you think you know. Cut the sugar and exercise and kapow!! Health happens. People are just so lazy. It is absurd though that a tiny container of raspberries costs 5 bucks but you can load up on a massive slurpee and huge back of chips for the same price. STOP SUBSIDIZING THE FARM INDUSTRIES THAT PERMIT THIS TO HAPPEN.
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YankeeCanuck
dog
03:37 PM on 05/20/2012
Sugar, and corn syrup added to processed foods, especially beverages, add calories. It's poor nutrition.
There are plenty of fruits and vegetables that are available in season locally. Farmers' markets are a good source. Then, there are community gardens, for those with a little time to devote to it.
BUt sugar-stuffed foods and lack of exercise are a perfect combination for poor health.
10:21 AM on 05/19/2012
A bigger problem with the idea of taxing unhealthy foods is that of defining what foods those would be. The general consensus about fat and saturated fats has been coming apart at the seams with recent science vindicating both. Sugar and, in particular, the fructose component of sugar (and HFCS), is now appearing to be implicated in the rise of obesity and chronic disease. However, most of the people who advocate taxing junk food target both sugar and fat. Denmark recently enacted a tax on saturated fat. Using taxation to influence healthy food choices, while appearing to be a good idea, is fraught with problems.
07:01 PM on 05/19/2012
Totally agree. By all rational definitions, pure, 110% Canadian maple syrup is junk food, and so is butter and honey. Uh oh.
09:40 AM on 05/19/2012
- not one link to legitimate studies that refute taxation
- no other solutions, just ridicule those with ideas
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Kristopher Leang
training to take down the elite
01:15 PM on 05/19/2012
thats these corporations mouthpiece job. they dont have facts, they are all too often against them. and what are solutions?? they only wish to instil confusion and fear
08:16 PM on 05/18/2012
Taxing junk food and subsidizing fruits and vegetables may not decrease the rates of obesity much but it's still good public policy. The only people opposed to these measures are the corporations whose profits depend on ever increasing sales of junk food.
The obesity curve began to rise in the 70's when American corn farmers who were very heavily subsidized by the government had to find new uses for the overproduction of corn. High- fructose corn syrup was invented and added to almost every processed food. High- fructose corn syrup is cheaper than cane sugar which keeps these products cheap and I suspect the amount of H-g corn syrup in food has been increasing ever since.
American pop and sweetened drinks are far sweeter than Canadian ones thanks to the H-g corn syrup pushers. I say tax and tax higher; tax to the point that these foods and drinks are no longer profitable to produce
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Kristopher Leang
training to take down the elite
05:42 PM on 05/18/2012
really more people wont buy less junk food if its is much higher price than its healthy counterparts? the laws of capitalism don't apply apparently in this instance
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arkymorgan
Nobody knows the trouble I've been...
03:38 PM on 05/19/2012
Not to mention that - having been poor - I can testify that the junk options are way, way cheaper than the healthy ones, and that when I was poor, that's what I had to buy.

It simply WAS cheaper to buy boxed mac+cheese than to make my own pasta and sauce. It WAS actually more cost effective to have breakfast at McDonalds than to buy eggs, bread and bacon for myself. Cheap,canned chilli and a bag of tortilla chips could feed me for two days for less than the price of a chicken breast and a few stalks of broccolli that went into one meal.

So I ate crap for months.. And I gained weight. If fresh veggies and real cheese and whole wheat bread had been subsidised, I would have been happy - oh, so much happier - to buy those.
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12:07 AM on 05/18/2012
Sound of clapping. Someone intelligent writing about thistopic on HPol-I am shocked they let it through.