Opinion

Opinion: Higher tax on junk food is bad policy on Navajo Nation





Tax analyst doesn't think a higher tax on junk foods is a good idea for the Navajo Nation:
The Navajo Nation is trying to use its tax code (I didn’t know the Navajos had a tax code) to promote healthier living. The Navajos recently voted to impose higher taxes on “junk food” and reduce taxes on healthier alternatives. I abhor government attempts to get people to do things for their own benefit. It isn’t the government’s job to make sure I will live to 100 or that I’ll go to heaven. Of course, the Navajo Nation has one of the highest unemployment rates in the country, hovering near 50 percent. Nothing says we care about you like imposing excise taxes on poor people. I know that raising taxes on poor people to get them to follow orders plays well in Knob Hill, and Brookline, and the Upper East Side. But I’m not sure how well it plays in rural Arizona or New Mexico.

Basically, under the proposal soda and fatty snacks would be taxed at 7 percent (up from the current 5 percent), But “fresh” fruits, vegetables, and nuts wouldn’t be taxed at all. I would remind proponents that most people won’t eat Brussels sprouts no matter what the tax rate is. I don’t know how the Navajos will define fatty snacks. Some are obvious — deep-fried Snickers bars would probably qualify. How about snacks that have no fat, like my personal favorite, cherry Twizzlers? Would they be taxed at 7 percent? I hope not. Would a Big Mac be a taxable snack? What happens if someone eats Twinkies for dinner? Would they still be taxed as a snack?

Get the Story:
David Brunori: Taxing Coca-Cola While Exempting Broccoli Is Bad Policy (Forbes.Com 3/7)

Related Stories:
Navajo Nation President Ben Shelly vetoes junk food tax bill (02/13)
Navajo Nation Council approves bill to impose junk food tax (1/31)

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