Fat Tax

31 May 2010 -- In the US and UK there is constant chatter about imposing taxes on goods that encourage unhealthy eating habits because of price and convenience, namely soft drinks and candy.

The latest banter comes from two US states, Washington and Colorado, attempting to define candy for their 'candy tax'. According to the morning edition audio segment on National Public Radio (NPR), a nonprofit membership US-based media organization, on May 31.

Apparently flour is the basis for identifying taxable sweets. If flour is present than it is not 'candy' but 'food' so Twix bars and Kit Kats will not be taxed but M&M's, Hot Tamales and Snickers would be.

Susan S. Smith, the Senior Vice President of Public Affairs for the National Confectionary Industry, expressed disappointment in the arbitrary policy and said "...it might be the emotional definition that might determine what candy is rather than a specific ingredient or two" offering that the industry could be helpful to policymakers.

It is unclear if this new tax will stick and how many states will join Washington, Colorado and Illinois in the near future but if you have a sweet tooth if might be good to stock up on your flour-free sweets outside of those states.

Or, you may want to reach for Red Vines, Butterfinger Stixx, Hershey's Cookies'n'Cream (not the original bars) and the like not sure how that helps the nation's war on obesity - considering chemical ridden, unhealthy sweets are still classified as food.

Smith has a point the tax appears to be arbitrary and the current motivation is more about revenue than health. However "a group of states working together to simplify and sync up their tax codes came up with the flour test. It took them two years. They insist that the flour lobby had no influence in the matter."