Soda tax, Botox tax, and more to pay for health care

by Eugene on July 28, 2009

in Economy

Why is it that whenever there’s a perceived problem, Democrats want to solve it by taxation?

Sugary beverages are not good for you, especially if you’re obese, so why not tax soda and raise money for health care reform:

At the Centers for Disease Control and Prevention’s “Weight of the Nation” conference today, CDC chief Dr. Thomas Freiden said increasing the price of unhealthy foods “would be effective” at combating the nation’s obesity problem,reports CBS News chief political consultant Marc Ambinder.

Freiden said he was not endorsing the tax as a member of the administration but was “just presenting the science,” according to Ambinder. He also said policies that would reduce the cost of healthy foods would effectively bring down obesity rates.

Obesity-related health spending reaches $147 billion a year, double what it was nearly a decade ago, according to a study published Monday by the journal Health Affairs.

Given that evidence, the argument goes, a soda tax could plausibly pay for health care reform both by raising revenues and bringing down the medical expenses associated with obesity.

Heck, why not just tax the “fattening” foods, suggested by the Urban Institute’s report?

Key among the “interventions” the report weighs is that of imposing an excise or sales tax on fattening foods. That, says the report, could be expected to lower consumption of those foods. But it would also generate revenues that could be used to extend health insurance coverage to the uninsured and under-insured, and perhaps to fund campaigns intended to make healthy foods more widely available to, say, low-income Americans and to encourage exercise and healthy eating habits.

And while we’re at it, let’s target the wealthy another way: tax their cosmetic surgery!

The Senate Finance Committee has discussed imposing a 10 percent excise tax on cosmetic surgery deemed unnecessary for medical purposes. The idea was broached in a meeting with OMB Director Orszag in mid-July, after which Senate Finance Chairman Max Baucus told reporters he had heard some “interesting,” “creative,” and “kind of fun” ideas.

The tax, which has not been officially scored, would plug some of the revenue gap senators are seeking to fill to keep on schedule for a markup the week of Aug. 3. It would target procedures prohibited under Section 213 of the tax code, which deals with itemized deductions for medical expenses not covered by health insurance.

Taxed enough already?

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