In what sense is taxing a food a "good" or a bad" way to raise revenue?

Question

In what sense is taxing a food a "good" or a bad" way to raise revenue?

Answer 1

im looking for the same answer

Answer 2

It could be good in terms that everybody will pay the tax, creating revenue.  However the bad is that it taxes the less wealthy more, people of lesser income pay more proportionally for food than those who have a higher income, being that food is really a necessity of life.   Assume a person making 10,000 a year and somebody making 100,000,  they each would consume  the same amount of food in a year, however the 10,000 income is paying a higher percentage of their income for taxes on food than the 100,000 income person therefore placing a higher burden on the less wealthy.  They will have that much less to pay for other items such as a place to live

Answer 3

It is a "good" tax since it is a consumption tax rather than an income or employment tax, so it does not create a distortion in the labor or capital markets.

It is a "bad" tax since it is likely to be regressive, as it be a larger burden for the poor, who pay more of their income towards food.

Answer 4

Poor people buy food. Your rich rear end may be able to afford the taxes, but why ruin it for the poor? You mean rich republican.

Answer 5

The ones who collect the taxes are not the ones using their labor to process the food to the markets. Revenue raising encourages more spending on higher product cost and places a greater strain on the middle and lower class which further divides the minorities.