OPINION
A non-governmental organization has recommended that governments raise taxes on tobacco, alcohol, and sugary beverages by 50% to generate U.S. $3.7 trillion in revenue.
They argue that the extra revenue collected (a 12% increase globally) should be handed to governments to improve public health programs.
There is another word to describe such a plan — theft.
The Task Force on Fiscal Policy for Health, whose membership includes former UK and New Zealand Prime Ministers, Gordon Brown and Helen Clark, former New York Mayor, Michael Bloomberg, and a host of other former government officials globally, made the call in a press release on Sept. 24 of this year.
However, they seem oblivious to the fact that proposed tax increases on commonly consumed products is a direct extraction of money from the public, harming lower income people the most.
Advocating taking money out of the pockets of individuals, pushing regressive taxes onto consumers, and ultimately making life more difficult for ordinary people, without a mandate, is a sinister new development in an increasingly paternalistic pursuit of forcing individuals to improve their health whether they like it or not.
And, while they say these measures will improve health, there is no scientific agreement that these taxes will do so.
Supporters of these taxes argue that revenue generated will fund public health initiatives and reduce consumption of harmful products.
However, the fact remains that these taxes always disproportionately impact the poor, as they are regressive by nature. Consumers who purchase these products will bear the brunt of the financial burden, not businesses.
The proposals mean governments will effectively take US$3.7 trillion from the public over the next five years.
The Task Force seems childishly unaware that businesses will not absorb these taxes but will instead pass the costs onto consumers through price hikes.
Consumers, not corporations, will pay.
Tobacco companies, alcohol producers, and manufacturers of sugary beverages are profit-driven entities; they cannot sacrifice their profit margins to cover increased taxes, nor would their shareholders allow them to.
Instead, the extra cost will be shifted to buyers, resulting in higher prices for everyday products. This burden will weigh most heavily on low-income consumers, those least able to withstand the extra costs.
For many individuals, the products being targeted: cigarettes, alcohol, sugary drinks—are sources of pleasure and comfort.
There is no recognition that excessive taxation will lead to greater dissatisfaction in people’s day-to-day lives.
Higher costs won’t stop consumption altogether; instead, it will drive the cost of living higher without any tangible benefit for those already facing financial difficulties.
There is a complete disregard for the pleasure and autonomy that individuals derive from consuming these products.
Whether it's the ritual of having a cigarette with coffee, enjoying a drink with friends, or indulging in a sugary treat, these activities bring enjoyment and comfort to millions of people.
By focusing solely on the health risks, the Task Force’s recommendations come across as paternalistic and arrogantly dismissive of human agency.
People are well aware of the risks associated with tobacco, alcohol, and sugary beverages. Taking away or severely taxing their pleasures doesn’t create a healthier society; it fosters resentment and limits personal freedom.
Consumers should have the autonomy to decide what they consume, as long as it’s within legal boundaries.
Implementing high taxes on certain products with the aim of reducing consumption is a form of social engineering, coercing people into behaviors the government deems appropriate. It’s the government telling the public, "We know what's best for you."
It is to be hoped that these recommendations are given short shrift by lawmakers, who should be focusing on education, personal responsibility, and moderation, rather than draconian ideas such as this.
It's not any government’s role to steal ever higher portions of disposable incomes and hand it over to purse-lipped bureaucrats to then makes the public’s lives drabber and more miserable.
The idea of taking US$3.7 trillion from the public over five years is heavy-handed overreach, and the notion that businesses will shoulder the burden is naive.
Consumers will pay the price, both financially and in terms of diminished quality of life.
People should be allowed to make informed decisions about their health without the government using fiscal policies to force their hand.
True progress lies not in punitive taxes but in empowering individuals to take control of their own choices.
Martin Cullip is International Fellow at The Taxpayers Protection Alliance's Consumer Center and is based in South London, UK.
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