Obesity: distributional effects of sweetener taxes

ConclusionAggregate sweetener taxes cause a welfare loss to both under-consumers and over-consumers of sweeteners. However, if a selective sweetener tax is imposed only on over-consumers of sweeteners (obese adults), a much higher tax would be necessary, depending on the percentage of population of under-consumers. A selective tax would also be excessively regressive on lower-income people who often over-consume sweeteners.
Source: Journal of Public Health - Category: Health Management Source Type: research