2 thoughts on “Sugar taxes have never worked anywhere”

  1. Posted 07/03/2018 at 13:23 | Permalink

    Just a couple of paradoxes: “From an economist’s perspective, the best tax is the one which causes the least disruption to economic activity. Most people would agree that it is better to tax luxuries rather than essentials, and it is better to tax the rich than the poor.” Actually, least disruption to economic activity almost certainly comes from taxing essentials because it does not change behaviour. Secondly, if the sugar tax does not change behaviour, from an economists point of view, it is an okay tax. So, we should be happy that it is not achieving its objectives – that is a good thing to an economist.

  2. Posted 10/03/2018 at 16:48 | Permalink

    Optimal resource allocation comes from the internalisation of costs, not the “least disruption” to people doing what ever they want.

    Its why we need laws, regulations and even Pigouvian Taxes

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