Why Would We Tax Something That’s Already Being Subsidized?

Here’s a perspective on the proposed federal tax on sugary drinks to pay for nationalized health care that nobody is really talking about:
What about sugar subsidies?
The whole idea behind a tax on sugar is to make us use less of it so that we’re healthier. I reject the notion that the government has any business doing that at all, but if we really want people to use less sugar why don’t we quit subsidizing it? If we quit subsidizing sugar the cost of sugary drinks and foods would go up.
According to Cato, we spend roughly $2 billion/year on sugar subsidies in America. And who knows how much the subsidies cost us in market distortions.
So here’s a challenge to the nanny staters: If you want less sugar use in America, let’s end sugar subsidies.
Or does that make too much sense?

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  • Cdodge

    If they stop subsidizing sugar, the price of sugary drinks will go down because global sugar prices are much much lower than they are in the US. In addition, the use of high fructose corn syrup will be obsolete because global cane sugar is cheaper.

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