Description: Britain plans one. Mexico has one. And Berkley California put one in place: a tax on sugary soft drinks that is. And in Canada, a recent report from our Senate called for such a tax as one means to combat obesity. Canada ranks number five in terms of the nations with the highest rates of obesity. The thought seems to be that a tax on sugary pop would prompt consumers to make better health choices.
1) Do you agree that a tax on sugary drinks is a good government policy to combat obesity?
2) If such a tax were implemented, how much revenue could be generated for Canadian governments?
3) How would you account for this revenue if you were a government accountant? For instance, would it be best to record it in general revenues or could you perhaps set up some sort of trust fund to be addressed towards health issues?