According to an article in the Vancouver Sun, a tax on sugary sodas and fatty burgers will do little to change the demand for these unhealthy items. The article explains in the state of California and many other places in the states, they have started placing sales taxes on sugary sodas in the hopes that this will discourage consumers from buying these unhealthy drinks. Apparently these extra taxes have not curbed the spending on such indulgements. They also went on to show how uneffective a tax such as this is by using a comparison to american favourite sandwhich, the Big Mac. The document went on to say that despite modest increases of 10 to 20 cents over the years, the demand for this ever popular sandwich remains relatively constant. They use the comparison to this burger to show that the demand for these unhealthy items is quite inelastic. They also go on to show that even though the demand in inelastic, people will still find substitutes. For example if the price of sodas with a new tax imposed increases, people may well start buying "cheaper, sweeter alternatives". The author also explains that if they were to impose a tax on say the Big Mac, they would have to impose the tax on all foods with such a high calorie intake. This would mean taxing foods in many types of restaraunts. In conclusion, they stated that they would need to look into providing a positive reinforcement by subsidizing healthier options, and giving people incentives through health insurance plans.
Taken from The soda tax fallacy; Levies on sugary drinks unlikely to change consumer behaviour; healthy diet incentives have more power (2011). Vancouver Sun. Article's URL: http://proquest
