Sugary drink tax third parties (MXC) and so want to consume at the unregulated market equilibrium to maximize their utility. This means that there is overconsumption of sugar and a welfare loss is created. The sugary drinks tax, a Pigovian tax, is a way to correct the negative externality by regulating the consumption of sugary drinks. Without a sugary drink tax, taxpayer money is used to pay for higher health care costs incurred from high consumption of sugar. Although this solution corrects the negative consumption externality, taxpayers that consume sugary drinks moderately and hence do not contribute to higher health care costs, still
Fat tax number, 72% of Americans, also believed that a tax would not actually help people lose weight. However, the question of whether or not taxation influences diet is an empirical question and not simply a matter of public opinion. While a February 2010 poll by the Quinnipiac University Polling Institute found that New York City residents overwhelmingly favor a soft drink tax, with 76 percent wanting the tax, and 22 percent opposing it. The poll found both Republicans and Democrats favor the tax. In October 2011, British prime minister David Cameron told reporters that his government might introduce a Fat Tax