In recent years there have been a number of high profile calls for government intervention in the form of taxes or bans to discourage unhealthy diets. These range from Mayor Bloomberg’s proposed soda ban in New York City to Hungary’s Hamburger tax. The Australian Medical Association has even weighed in on the debate and voiced support for similar measures in Australia.
This issue can raise various emotive and ideological arguments pertaining to government and individual rights. However, this article will analyse the proposition of a ‘fat tax’ from an economic perspective.