Economics Effects of Taxing Sugar Beverages - Research Paper Example

Economics Effects of Taxing Sugar Beverages Introduction Economics of healthcare entails development of policies relating to efficiency, effectiveness and value in the production including consumption of beverages. Evidently, it provides requisite incentives that are tailored to ensure advancement of vibrant and healthy individuals to boost economic performance. Sound health care system (HCS) is critical in any setting that seeks to leverage its performance. It is identified that, successful nations operate under superior healthcare systems that ensures safety of citizens. Clearly, health economics, studies the functioning of individual’s nursing care system and behavior with an aim of providing amicable solutions to complications that may hinder human productivity at various levels. Ideally, the concept of health economics has been recognized as a requisite technique of ensuring reduction of consumption of non-dietary beverages with detrimental effect to human development. Critically, health policy is vital in facilitating infrastructural set up to enhance provision of timely health treatment to victims of lifestyle diseases. It provides requisite capacity through legislation on various economic measures for example, initiation of price controls to balance supply and consumption. Such economic policies have provided conventional measures in various sectors that have ensured reduction in consumption of non-dietary food items. Economists assert that best economic policies that could reduce consumption of non-dietary food that contribute to lifestyle diseases include adoption of price cap and taxation policies. These policies would advance commodity prices hence reduce its demand. Evidently, sugar beverages form one of the food items consumed by majority that have immense effect on productivity. It presents severe complications that delimit human functioning and productivity. Chronic diseases that it causes include diabetes, obesity and heart diseases that have severe complications. Economists assert that, nations and individuals should adopt essential methods to facilitate eradication of lifestyle diseases that presents long-term complications for example diabetes which is caused by consumption of sugar beverages. They stated that authorities should adopt proper conventional strategies to facilitate eradication of chronic diseases that causes immense lose. Nations including US have initiated development of sound health care policies to provide basic incentives towards improving health standards. The policies are geared towards reforming the entire health system with an aim of providing effective, fair and superior medical assistance to citizens. US government view health as a vital element that has to be improved through potential policies with absolute potential to revolutionize the sector. This is to facilitate provision of fair nursing care through superior treatment ideals and dietary counseling. Consequently, the policy seeks to ensure that individuals are informed about the dangers of compromised dietary food consumption including complications of drugs. This paper evaluates the imperativeness of economic health care with focus to sugar beverages that hinders human development. Health care policies Health care policies are comprehensive guidelines that drive provision of quality nursing services and enhancement of individual’s life standards. Health officials are under obligation to provide basic treatment and counseling based on health matters and food dietary system. The activities should be formulated with an aim of developing a healthy nation with vibrant economic prospects that are sustainable. Developing effective health care policies requires input of various stakeholders (Neuman 1). Evidently, effective health policies should consider various factors that include monetary impact, dietary system, and infrastructural system and health professionals. These factors are significant in devising appropriate health policies that enhances safety and human performance. Ideally, health practitioners have a responsibility to relay crucial information on severe diseases and their causes that results to human incapacitation. Such information would facilitate identification of evident health problems to facilitate development of relevant solution techniques. Economists and health officials asserts that, some of the lifestyle diseases can be managed through imposition of stringent economic measures for example taxation Indeed, diabetes causes a lasting incapacitation of human performance hence its cause should be eradicated. The disease is considered a chronic and requires immense resources for treatment. It is rated as one of the chronic diseases that pose a great threat in the world health wise. Evidently, there are current guidelines detailing dietary counseling programs to sensitize citizens on the dangers of poor dietary system and consumption of sugary items due to their detrimental aspect (Paul 78). However, the program has not yielded best results since the disease is still prevalent. This has prompted stakeholders to design new technique to ensure reduction of consumption of sugary meals due to its effects through taxation. Economists and health officials agree that setting high taxation rates on sugar beverages would contribute significantly to the reduction of its consumption. Increase in taxation would intern raise the cost of attaining sugar beverages that would limit its consumption. The policy is being used to ensure effective balance between supply and demand of sugary beverages. Clearly, best economic policy that holds relevance to ensure reduction of sugar beverage consumption is referred to as price cap policy. The plan has requisite incentives to raise commodity prices through taxation. It ensures that prices are beyond employment income and individuals buying propensity to limit access to particular commodities that poses health danger (David & Mark 13). This policy is vital since it would lead into monetary limitation towards acquiring sugar beverages and in turn switch automatically to consumption of dietary beverages with life potential. Dietary beverages are commodities that contain natural nutrients for example sucrose and caloric sweeteners that are essential for human development. According to Getzen (15), economic policies are fundamental in streamlining any setting since its principles provides basic strategies that are well informed to regulate the market including consumption of products. Governments and various authorities apply economic policies to regulate supply and demand of various products through taxation, interest rates and employment strategies. These strategies streamline acquisition of various products and consumers purchasing parameters that are guided by employed economic policies. Health officials assert that, the best method to ensure lasting solution to severe complications to sugar beverages is by increasing its attainment price Michael 191). Consequently, continuous education on its effects is also viable and should be enhanced through new strategies. Evidently, ancient policies on health care that emphasized on education and awareness creation of dangers of non dietary food items has failed to yield significant results due to neglect by individuals. Sources and their Identification Neuman, William. Proposed Tax on Sugary Beverages Debated. 2009. Web. Sep. 2012 As noted by Neuman, sugar beverages posses great challenge in health advancement and individuals soundness. It presents severe effects that delimit individual’s capacity to produce and be economically viable. He asserted that, authorities should craft relevant policies to contribute towards eradication of causes of severe diseases that has great effects on performance. Clearly, health officials have stated that diseases for example, diabetes, obesity and heart diseases are increasingly becoming prevalent due to consumption of non-dietary beverages. It is evident that the diseases have led to severe complications including lose of life hence require basic measures with requisite potential to provide favorable solution. He suggested various measures that includes in creased education on dietary practices, increased taxation to discourage consumption of such food items and enhancement of quality infrastructural set up to facilitate comprehensive Medicare to victims. Wood, Robert. The Negative Impact of Sugar-Sweetened Beverages on Children's Health. 2009. Web. Dec. 17th May 2012 Wood discusses the imperativeness of adopting of taxation as a policy to facilitate reduction of sugar beverage consumption. Taxation has resulted to increase in price value of sugar beverages beyond most individual’s capacity. This has contributed effectively to reduction in consumption of sugar beverages that has detrimental effects to human growth. He stated categorically, that taxation has led to reduction in consumption of non-dietary meals, their sales volumes and production. It is ideal for nations that seek to realize quality performance and individual output to develop strong policies to regulate consumption of non-dietary food items that holds detrimental elements. Consequently, he provided viable measures that authorities should adopt to eradicate severe nutrition al complications. Dietary education and economic policies are major elements that provide viable incentives through which authorities may eradicate consumption of non-dietary food. Morrisey, Michael. Health Care economics. 2008. Web. 17th May 2012 Morris in his narration provides dangers of consuming sugar beverages where, he highlighted that its consumption leads to acquisition of chronic diseases for example diabetes. He proposed a raft of measures that would facilitate eradicate consumption of sugar beverages with an aim of developing a nation with healthy citizens. His proposals have been accepted and adopted as part of the mechanisms through which amicable solutions may be achieved. He equivocally, emphasized on development of stringent economic measures since educative measures were not yielding timely results. He noted that economic measures would provide timely impact that would compel consumers to switch to nutritional sugar beverages. This would ensure development of a healthy nation with exemplary economic performance. Kelly, Brownell. The Public Health and Economic Benefits of Taxing Sugar-Sweetened Beverages. 2009. Web. 17th May 2012 Kelly provides insightful information on nutritional food items that have immense incentives to boost human performance and health status. It is imperative for individuals to adopt best health practices to advance their lifestyle and productivity. He asserted that lifestyle diseases are in increasingly affecting young people who should be productive in the society. He started that taxation and price cap policies have helped in building sustainable individuals health wise. He stated that, authorities should advance medical guidance centers and personnel to facilitate provision of dietary guidance to individuals. Similarly, regulations on purchasing propensities should also be advanced to regulate demand and supply of commodities. This should be effected through price cap and taxation policy that have relevant mechanisms to ensure price regulation. Burn of production and consumption of non-dietary food items also forms a viable policy that would restore nutritional sanity. It is imperative to note that dietary practice is a noble program that enhances one’s lifestyle hence should not be viewed in isolation. Feldstein, Paul J. Health Care Economics. Clifton Park, NY: Delmar Cengage Learning, 2011. Print. Feldstein explores the role of policy makers in ensuring g that viable dietary programs are adopted to advance health status of citizens. He stated that authorities should design holistic techniques to facilitate identification of non-dietary food that poses limited health complications and initiate, superior programs to addresses such effects. Diabetes is a chronic disease that causes severe complications to human functionality and can be controlled through adoption of relevant policies for example imposition of high taxation. This policy would ensure increased cost of non dietary food items thereby enabling consumers to turn to dietary meals. The narration provides accurate and valuable information about decision maker’s responsibility towards development of a healthy nation. Cost-benefit analysis High taxation on sugar beverages presents various benefits and limitations to the economy. Tax implications have requisite impact on commodities supply and demand that must be managed effectively. Authorities must analyze tax implications on supply and demand before imposition of tax rates especially on essential products. That is, they should impose tax rates base on clear policies that would define increase or decrease depending on the commodities contribution to the economic, social and cultural setting of individuals. According to (Wood, 1) commodities that are detrimental to human health standards and productivity should be taxed highly to neutralize their usage and demand. This would facilitate reduction on demand of such items and their effect on human performance. Clearly, high tax rates should be levied on sugar beverages to reduce its consumption due to its detrimental nature. The policy would delimit its manufacturer’s potential to exemplary returns and re-evaluate of production cost. However, government would benefit from tax revenues that are vital for economic growth. Consequently, the policy would enhance sales volumes of dietary sugar beverages that in turn would boost returns for the companies and government (Folland, 1). Although, the policy would disadvantage sugar beverage producers, it presents immense cost benefit health wise to individuals. It eliminates high cost of treatment various disorders that it presents to individuals through chronic diseases. Therefore, authorities should develop strong economic policies for example taxation to regulate consumption of detrimental food items. Executive Summary, The paper explores economics in the health care sector with effects of taxation of sugar beverages and formulation of its consumption reduction policies. Evidently, sugar beverages are commodities with deprived nutrients that facilitate development of chronic disease in human beings. The diseases cause severe effects to human performance and productivity that has prompted deliberations on best policies that enhance its limited consumption. The paper gives relevant highlights on the diseases that the beverage causes in human beings that include diabetes, obesity and heart diseases. Such diseases are branded as lifestyle disease by health experts and have prolonged effects. Economic and health policies have been cited where increased tax rates on sugar beverages are cited as the most viable policy. Similarly, price cap policy that entails reduction of individual’s propensity to purchase is also cited. The policies adopt taxation principles to regulate demand and supply of commodities. Taxation policy has facilitated reduced consumption of sugar beverages, through increased cost of purchase that majority cannot afford. Consequently, the policy has affected production of sugar beverages that has significantly reduced due to low demand. It has also affected return value of the producing company while governments would benefit from the revenues. The strategy is aimed at reducing production and consumption of sugar beverages due to its effects. Conclusion Evidently, tax policy has significant contribution towards ensuring reduction of sugar beverages that have detrimental effect to human performance. Therefore, policy makers should advance its application to facilitate eradication of unwarranted complications that it presents. Works Cited David A. Cutler and Mark McClellan, “Is Technology Change in Medicine Worth It?” Health Affairs 20, no.5 200. Feldstein, Paul J. Health Care Economics. Clifton Park, NY: Delmar Cengage Learning, 2011. Print. Folland, Sherman, Allen C. Goodman, and Miron Stano. The Economics of Health and Health Care. Boston: Prentice Hall, 2010. Print. Getzen, Thomas E, and Bruce Allen. Health Care Economics. Hoboken, NJ: Wiley, 2007. Print. Kelly Brownell. The Public Health and Economic Benefits of Taxing Sugar-Sweetened Beverages. 23012. Web May, 2009. Morrisey, Michael. Health Care economics. 2008. Web. 17th May 2012 Michael A. Morrisey, “Competition in Hospital and Health Insurance Markets: A Review and Research Agenda,” Health Services Research 36, no. 1, pt. 2 2001. Neuman, William. Proposed Tax on Sugary Beverages Debated. 2009. Web. 17th May 2012 Paul Fronstin, “Sources of Health Insurance and Characteristics of the Uninsured: Analysis of the March 2003 Current Population Survey,” EBRI Issue Brief, no. 264 (Washington, D.C.: Employee Benefit Research Institute, 2003). Wood, Robert. The Negative Impact of Sugar-Sweetened Beverages on Children's Health. 2009. Web. 17th May 2012 Appendix Purpose of the study The study is to relay essential information with requisite capacity to transform the health sector through adoption of superior nursing practices. Its main aim is to provide information that relates to advancing efficiency, effectiveness, value and excellent behavior in food production of consumption. Ideally, effects of taxation and love for non-dietary food consumption with detrimental effects prompt the need for the study to facilitate adoption of superior policies with life orientation. Consequently, the study aims at providing decision makers and key stakeholders with insightful information to enable crafting of non-dietary food reduction policies. Sugar beverage consumption has presented immense challenges to individual’s productivity due to its detrimental nature. Lifestyle diseases that it instigates include diabetic, obesity and heart diseases that present severe complications to human growth. Economists and health experts have identified sugar beverage as a food item that is widely consumed. However, it poses enormous risks to human development. Indeed, its major complications require adoption of superior health care and economic policies with absolute capacity to eradicate its consumption including mitigation of its severe effects on victims. Therefore, the study seeks to give health and economic perspective on potential policies and taxation strategies that would provide lasting solution to sugar beverage consumption. Rationale of the study Taxation provides essential guidelines that ensure reduction in consumption of various commodities. Its imposition would facilitate regulation of demand and supply of sugar beverages that has severe damages to human functionality. Clearly, adoption of balance diet is critical for developing healthy nations. Individuals have suffered due to poor knowledge on best food items with superior nutritional value. Therefore, development of rational health practices and policies forms a viable technique to facilitate nursing care through equipping decision makers with strong policy issues. Research Methods The study adopts purposive research method where sources of information are identified based on its suitability to provide pertinent information that would advance the realization of set objective. Evidently, primary and secondary sources are to be used where electronic materials will be used including interviews to aid the research. Relevant data collection will be effected from identified sources on purposive nature with an aim of obtaining basic information. The researcher will administer data collected to ascertain relevancy and consistency. Consequently, data analysis is to be performed using pertinent software’s and recommendations made efficiently. Working Outline This section provides a working outline that seeks to give an annotation of the key concepts including primary sources that are vital towards realization of the studies objective. The work outline entails identification of I. Introduction II. Purpose of the study III. Research methods IV. Health care policies Rational of the study V. Annotation of sources VI. Effects of taxation on sugar beverages VII. Major policies that are critical to ensure reduction of non dietary food consumption VIII. Cost benefit analysis IX. Executive summary Read More