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
Criticism of the Food and Drug Administration additives were tested in the research: On April 10, 2008, the Food Standards Agency called for a voluntary removal of the colors (but not sodium benzoate) by 2009. In addition, it recommended that there should be action to phase them out in food and drink in the European Union (EU) over a specified period. UK ministers have agreed that the six colorings will be phased out by 2009. A Japanese group found in 1987 that tartrazine was not carcinogenic after being fed to mice for two years. A German group found in 1989 that Sunset Yellow did not induce mutations