Abstract
Junk food consumption is associated with rising obesity rates in the United States. While a “junk food” specific tax is a potential public health intervention, a majority of states already impose sales taxes on certain junk food and soft drinks. This study reviews the state sales tax variance for soft drinks and selected snack products sold through grocery stores and vending machines as of January 2007. Sales taxes vary by state, intended retail location (grocery store vs. vending machine), and product. Vended snacks and soft drinks are taxed at a higher rate than grocery items and other food products, generally, indicative of a “disfavored” tax status attributed to vended items. Soft drinks, candy, and gum are taxed at higher rates than are other items examined. Similar tax schemes in other countries and the potential implications of these findings relative to the relationship between price and consumption are discussed.
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Acknowledgements
This study was prepared under the Robert Wood Johnson Foundation-supported ImpacTeen project through a grant to the University of Illinois at Chicago and a subcontract to The MayaTech Corporation. The views presented in this paper are those of the authors and do not represent the views of the Robert Wood Johnson Foundation or its Board of Directors or the authors' employers.
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Because of observations from the tobacco wars, the authors look at how taxes on junk food might help combat obesity.
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Chriqui, J., Eidson, S., Bates, H. et al. State Sales Tax Rates for Soft Drinks and Snacks Sold through Grocery Stores and Vending Machines, 2007. J Public Health Pol 29, 226–249 (2008). https://doi.org/10.1057/jphp.2008.9
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DOI: https://doi.org/10.1057/jphp.2008.9