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The Daily Tar Heel

Viewpoints: Revenue will help fund wellness

THE ISSUE: The N.C. Medical Society recently announced it will consider a resolution to support a statewide tax on unhealthy foods to combat obesity in the state. Proponents argue that a tax will help raise revenue for wellness programs to combat obesity and act as a disincentive for unhealthy lifestyles. Opponents say the tax would be an unfair regressive burden that won’t change behavior.

Make no mistake — obesity is an epidemic. And it can be fatal.

The most common cause of death in America is heart disease, and obesity can be a major contributing factor. In fact, an American will die from a “coronary event” about every minute.

So it should come as no surprise that the N.C. Medical Society is discussing supporting a tax on unhealthy foods.

Taxes that try to influence lifestyle choices have become quite controversial. Most Americans see it as government coercion.

But obesity is a social problem. The poor lifestyle choices of some burden society as a whole. More unhealthy people means more demand for health care. And that means higher premium prices for all.

It is a classic economic dilemma. Ideally, the social cost should equal the price. But with unhealthy foods, this is clearly not the case. A tax will correct that.

Many dismiss the tax as damaging the “free market,” while simultaneously claiming that the tax will have no effect on purchases of unhealthy food.

But the free market is about having the liberty to make choices. So if consumers aren’t going to change those choices, then the free market has not been damaged, or even altered. Such logical inconsistency is hardly the foundation for good policy.

And if the revenue from this tax goes to health and wellness programs, the concern over whether or not people still buy unhealthy food is largely erroneous.

Because if they do, there will still be more revenue for programs that will help people improve their health. And this trumps the status quo.

Let’s assume the tax does in fact dissuade people from eating unhealthy food. Then, incentives are better aligned for people to make economic choices consistent with the cost to their health and to society.

The other argument is that this is a burden on the poor. But this is not entirely the truth.

Unfortunately, the most affordable food tends to be the unhealthiest. There is no denying it. But the reality is that a third of Americans will eat fast food at least once a week. Fast food is enjoyed by all.

It remains an attractive option to all socioeconomic levels because it is not only cheap, but also convenient to obtain.

At the end of the day, taxing unhealthy food means pennies on the dollar to help society at large.

 North Carolina is ranked the 12th most obese state in the nation. This is an urgent public policy concern. And a tax on unhealthy food can and should be part of a comprehensive plan to address it.

Cameron Parker is a Sophomore public policy major from Forsyth, Ga. Email him at cameronp@email.unc.edu

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