Junk Food Taxes: The Answer to an Economic Problem?

Who would have thought that increasing taxes on junk food could possibly amount to a potential $2 billion dollars in the state's pocket? Why, government officials, of course. In Illinois, that's exactly what is being proposed by Governor Pat Quinn and Illinois Hospital Association Chief Maryjane Wurth. Why all the hype behind the junk food tax and how's it gonna help? Let's take a look at everything behind the reasoning, and then weigh in with your thoughts!

Reason Number One Behind the Junk Food Tax

The governor has proposed a $2 billion dollar cut in Medicaid. That's the gist of the big reason behind the junk food tax: money. If the governor's proposed cut goes through, the health care industry will have to cut 19,000 jobs...if nothing is done to make up for the difference.

So, of course, the hospital industry looked for a way to potentially save their hospitals from closure, and they came up with a junk food tax. The idea isn't new in any way – junk food is already taxed – but the taxes are expected to jump quite a bit to make up for such a huge budget cut.

Reason Number Two for Taxing Junk

Another reason that taxing junk food sounds so promising to the health industry is that they hope to discourage people from buying foods with little nourishing power. When people stop buying junk, their bodies should fare better. Supposedly, incidences of heart disease and Type 2 diabetes (to name a few diseases caused by or worsened by poor nutrition) will decrease if there's a large tax on sodas, candy, chips and other foods deemed "junky."

This just might be the case, though. When we think back to the beginning of cigarette tax spikes, we can see that people did begin to quit smoking when tobacco was heavily taxed. The same could occur with junk food. (I'm now awaiting the day when drinking a soda will become a social stigma that requires die-hard soda fans to sneak our sugar fixes outside behind the dumpster at work).

My Two Cents

I suppose taking junk food is a good idea when presented in this light, but when I first heard a blurb on my local news that the state would like to heavily increase the junk food tax, I thought it a little unfair. Who's to say a package of Oreos should cost twice as much as other foods? I like me my Oreos. Sigh. I might be baking more soon, I think.

In retrospect, though, I do think this is a relatively good idea. I do know that I would think twice about throwing a carton of ice cream into the cart if I have to shell out a ton of cash. I suppose my health would improve.

What do you think about a hefty junk food tax? Would you still pick up your favorite treat if it was heavily taxed?

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