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The Poverty Effects of a “Fat-Tax” in Ireland

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  • David (David Patrick) Madden

Abstract

To 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.

Suggested Citation

  • David (David Patrick) Madden, 2013. "The Poverty Effects of a “Fat-Tax” in Ireland," Working Papers 201303, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:201303
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    File URL: http://hdl.handle.net/10197/4268
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    Cited by:

    1. David Madden, 2015. "Health and Wealth on the Roller-Coaster: Ireland, 2003–2011," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(2), pages 387-412, April.

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    More about this item

    Keywords

    Poverty efficiency; Consumption dominance;

    JEL classification:

    • 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

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