Friday, June 19, 2009

Problem-solving, the Congress-style.

It is a well established fact that the growing obesity of the US population is one of the major factors contributing to the rising medical costs. To address the problem we have to deal with obesity, which is largely caused by eating too much junk food (fat+sugar+salt). Taxing junk foods, including burgers and lattes, and related ads seems like a very logical solution: it works to reduce consumption and collects money from people who are more likely to use medical services in the future.
Well, this is too logical for the US Congress. Here's how they propose to fix our health care:
- Increasing the price of soda and other sugary drinks by 10 cents a can.

- Applying a potential 2 percent income tax increase to single taxpayers earning more than $200,000 a year and households earning more than $250,000.

- A new employer payroll tax could target 3 percent of employers' health care expenditures.

Compared to a $2 per pack cigarette tax, the 10 cents soft drink tax seems tiny and ineffectual. It is not going to make any significant difference in consumption. The other taxes is just a politically expedient way to move money from one pocket to another. The Congress doesn't even attempt to address real long-term issues behind the rising medical costs. The health care bill is driven by problem-solving in party politics, not health care.

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