Sunday, November 7, 2010

The Economics of a Soda Tax: Update

My April post on The Economics of a Soda Tax has been a favorite with readers, drawing more hits than almost any other post on microeconomic policy. Unfortunately, it appears that a soda tax is less popular with the electorate than it is with readers of this blog. In a ballot initiative this month, voters in my home state of Washington endorsed a repeal of the state's pioneering tax on soda and candy by a nearly 2:1 margin. It seems that we have to look elsewhere for a resolution to the twin crises of obesity and insolvency.

1 comment:

  1. Soft paternalism meets tyranny of the majority. It's kind of surprising though...I'd have guessed that perhaps the soda industry might have engaged in some rent-seeking behavior.

    On a tax related note...what do you think the outcome would be if tax payers were allowed to vote with their taxes?