Danish Fat Tax!
October 6, 2011 4 Comments
Next time you’re in Denmark, be sure to steer clear of foods high in saturated fat. And now it’s not only because they’re unhealthy. Last week, the Danish parliament voted to impose a “fat tax” on all fatty foods in an attempt to encourage Danish people to eat healthier. Sound ridiculous? If so, that’s probably because this small Scandinavian country is the first to ever impose a fat tax.
The tax will target items especially high in saturated fat, like butter. The tax rate is about $3.00 for every 2.2 pounds of saturated fat. To put that into context, CBS News claims that the tax translates to about a $0.40 increase per package of butter and around a $0.15 increase per hamburger. Not a huge increase, but it’s the idea of a tax on fattening foods that is especially intriguing.
Before saying anything else, I have to point out the irony in this situation. People living in Denmark are Danish. A “Danish” pastry is a specialty from Denmark that is high in saturated fat. Made with a lot of butter. Which will now be more expensive. Am I alone in thinking the pastry-makers in Denmark are the driving force behind this tax in an effort to increase profits? 
So now we come to the obvious question: could it work in America?
In a word…no.
As nutrition expert Marion Nestle points out, we can’t even get a tax passed on sugary beverages, “which ought to be an easy target.” I don’t think there’s any way we could ever get a tax like this passed in the US because, in part, of the overwhelming power of the food industry and the influence it has on our politicians and their decision-making.
But will it work in Denmark? Some Danes are already saying the tax won’t have any impact on their food choices. And the reason for that line of thinking is pretty funny: “Danes are big fans of butter.” And Danishes…!
Find the CBS News article on the “Fat Tax” here: FAT TAX!
Even if it doesn’t succeed, it’s an interesting idea. If a fat tax were ever imposed in your country, would it have an impact on your food choices? Would you avoid foods high in saturated fat because of the tax or would your decision be health-related? Maybe a bit of both? Comment and let me know!
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Thanks for the shout-out, Sarah
Loved the blog entry!
I think this is pretty similar to the idea that taxing cigarettes will keep people from smoking. A lot of research in behavioral economics has found that only people with disposable income (and maybe a true addiction) will continue purchasing drugs at an increased/escalated cost – those that need to spend the money on more vital/necessary goods (i.e. food, rent, etc) will refrain from purchasing the drug. In this instance, I would imagine that only those with a disposable income and excellent health would continue purchasing the high-fat items at the increased cost – those with less money and poor health may find it harder to justify…
Hey Kelly! Thanks for commenting. I would really like to think that if we taxed unhealthy foods people would stay away from them, but I can’t say for sure. I would be optimistic because I believe that money drives decision making, especially for those who do not have disposable income, but in the case of food, there are many more factors in play. Fast food is just that…it’s fast. And for a family where mom and dad need to work 2 jobs each just to pay rent, there isn’t time to cook dinner for a family of five. I don’t know what the solution is, but for some reason I don’t think taxing unhealthy food and adding an extra five cents to the cost of a Big Mac and a large french fry would deter enough people. Can you think of other ways to try and get people to stop buying unhealthy food?