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Question: 3 applications of limited attention 31 sin and sugar taxes...

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3 Applications of Limited Attention 3.1 Sin and Sugar Taxes Many governments use taxes as a policy tool to discourage consumption of products that are considered unhealthy or socially harmful, like alcohol, cigarettes, and soda. The Coalition for Healthy Kids and Education has been campaigning for a 1.5 cent per ounce tax on soda sold in Multnomah County (Portland area). Imagine they succeed in getting this tax passed and you are advising them about how to implement the tax. If their goal is to maximize tax revenue, what would you tell them to do? If their goal is to minimize soda sales, what would you advise them to do?

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