Tuesday, September 8, 2009

Sugar do do do do dudu ahhhh honey honey....


So the government passes a "sugar tax". The idea is simple: Increase government revenue, decrease the over consumption of unhealthy and empty calories, and make healthy foods more competitive vis a vis the consumer's wallet.

The result is predictable: The tax winds up applying to only some sugar-filled products but not to others (super sugary yogurt and skyr drinks for instance) and somehow winds up applying to sugar-free products like chewing gum. The over all effect is to raise food prices and increase inflation to the point where the increase in state revenues equals out to nil.

Icelandic lawmakers remind me of a chef who never washes his pots and then wonders why his creme brulee tastes like steak...

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