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Sugar Tax: Pros And Cons

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Whether to impose sugar tax is an interesting economic debate, while the taxing sugary beverages have its pros and cons, it also may create some problems for the state legislatures and other government bodies. Sugar tax will result in increasing the prices of products which hurt the low income group because low income people spend much higher portion of their income on the related products. The sugar tax may have a very marginal impact on reducing consumption and will encourage the people to switching to alternatives (e.g. switching to cheaper products or switching to other high calorie alternatives, like fruit juice) which may not provide the benefits state intends because it will not result in a great reduction of the people’s calorie

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