Nov 112012
What the world can learn from Denmark’s failed fat tax
Denmark added a tax to fatty foods. Result: prices went up because
A) Foods were taxed at a higher rate
and
B) Food producing companies had to do a lot more paperwork, which added to the cost of doing business, which raised the cost of food (which was now taxed at a higher rate)
End results:
1) Danes crossed borders to buy food cheaper elsewhere
2) Danes lost their jobs
3) The tax just got repealed as a bad idea.
So what can American government officials learn from this? Well, most importantly… TAXES CAN GO AWAY.