The Poverty Effects of a “Fat-Tax” in Ireland
AbstractTo combat growing levels of obesity, health related taxes have been suggested with taxes on foods high in fat or sugar. Such taxes have been criticised on the basis of their regressivity and potentially adverse impact upon poverty. This paper analyses the effect of such taxes on a range of poverty measures and also examines the effect of a revenue-neutral tax subsidy mix with a tax on unhealthy food combined with a subsidy on more healthy food. Using Irish expenditure data, the results indicate that taxes on high fat/sugar goods on their own will be regressive but that a tax-subsidy combination can be broadly neutral with respect to poverty.
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Bibliographic InfoPaper provided by School Of Economics, University College Dublin in its series Working Papers with number 201303.
Length: 36 pages
Date of creation: 25 Mar 2013
Date of revision:
Poverty efficiency; consumption dominance;
Other versions of this item:
- Madden, D.;, 2013. "The Poverty Effects of a "Fat-Tax" in Ireland," Health, Econometrics and Data Group (HEDG) Working Papers 13/07, HEDG, c/o Department of Economics, University of York.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
This paper has been announced in the following NEP Reports:
- NEP-ACC-2013-10-05 (Accounting & Auditing)
- NEP-AGR-2013-10-05 (Agricultural Economics)
- NEP-ALL-2013-10-05 (All new papers)
- NEP-PBE-2013-10-05 (Public Economics)
- NEP-PKE-2013-10-05 (Post Keynesian Economics)
- NEP-PUB-2013-10-05 (Public Finance)
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