Tax Junk Food to Balance the Budget?

Colorado’s governor Bill Ritter is proposing a tax on candy and soda (as well as junk mail) to try and ease budget strains.

The AP reports:

The exemption for candy and soft drinks would save $3.5 million this year and $18 million next year. The governor’s plan to suspend a tax exemption for junk mail, which is expected to restore $290,000 in the current budget and $1.4 million in next year’s budget, was the first to pass the House Finance Committee.

The bill now goes to the full House for debate.

Ritter’s proposal had support from teachers, students and retirees, who said they sacrificed to prop up the state budget and believe it’s time for businesses to share the pain.

While this may sound like a great way to generate funds, fight obesity, and encourage healthier eating (the idea of a soda tax has been gaining in popularity), there are some logistical problems that seem pretty significant:

Rep. Brian DelGrosso, a Republican from Loveland, said the candy tax is virtually unenforceable. He said it’s impossible to determine which snacks qualify as food and would be exempt under the bill. Items with flour would be exempt, along with some snacks that contain sugar.

DelGrosso said Kit Kat bars, for instance, would be exempt because it qualifies as a cookie. Milk duds would be taxed.

But, the idea is still garnering support elsewhere. To the south, two New Mexicans made a strong plea for a similar idea:

While a food tax does nothing but harm, a junk food tax would do some good. It would, for instance, help combat New Mexico’s growing obesity crisis, which would reduce health care expenses over the long term. In 1986, fewer than 10 percent of New Mexicans were obese, according to data from the Centers on Disease Control and Prevention. By 2008, over 25 percent of New Mexicans were obese.

In addition, according to a 2003 analysis by the Taxation and Revenue Department, a tax on candy and soft drinks would generate approximately $22.4 million annually.

The health and economic benefits of a junk food tax explain why more and more states are enacting them. Thirty-three states tax soft drinks. Fifteen states tax candy.

I’m all for it as long as the Peppermint Patty is exempt.