Federal excise tax and obesity prevention in the United States

Federal Excise Tax and Obesity Prevention in the United States

Abstract

The current approach to taxation of sugar sweetened beverages (SSBs) in the United States is
making a marginal impact, at least, on obesogenic behaviors and weight outcomes. Currently
some states impose sales tax on SSBs but there is no federal tax in the United States. In this
paper the emphasis is made on the excise tax as a potential policy instrument to address the
obesity epidemic. The design and size of this tax must be based on balancing objectives. The
objectives are: generating revenue that can be used for obesity prevention programs, particularity
childhood obesity, to offset the healthcare costs of obesity, and changing the behaviors of the
most disadvantaged population.