NY Obesity Tax Dies

Two months after introduction the NY State Obesity tax proposal has died.

No doubt emboldened by the success of cigarette taxes reducing demand for tobacco, NY state thought something similar for sugared soft drinks may work too. Nice idea in principle, but a combination of consumer outrage (75% negative sentiment), perceptions of fairness, and challenges of executing the scheme brought it down.

There is no doubt that some government-led social engineering in the anti-obesity battle is needed, but this tax solely on sugared soft drinks was poorly thought through and the plan got what it deserved.