The possibility of taxing meat in the future may not seem so far-fetched after taxes on sugar sweetened beverage products and carbon at the local level have started spreading across the nation to raise revenue, improve public health, and benefit the environment. It follows that taxes on animal food products may be the next type of “sin” tax aimed at improving long-term health in Americans and reducing greenhouse gas emissions while raising revenue.
On Dec. 12, 2017, the Farm Animal Investment Risk and Return, an investor initiative, released a preliminary report warning that the enactment of the Paris Agreement may spur some governments to consider the idea of taxing meat and argued that a sin tax on meat is following a similar route as taxes on tobacco, sugar, and carbon.
Currently, the global livestock industry is responsible for about 14.5 percent of the world’s greenhouse gas emissions, with cattle causing about 65 percent of those emissions, according to the Food & Agriculture Organization. They also predict that global meat consumption will increase 70 percent by 2050.
These reports have persuaded some investors “to push companies to diversify into plant protein, or even suggest livestock producers use a ‘shadow price’ of meat—similar to an internal carbon price—to estimate future costs,” as first reported by Emily Chasan in the Daily Tax Report (subscription required).
Politicians in Denmark, Germany, and Sweden are campaigning for a tax on meat, eggs, and dairy products. However, there is currently no proposed meat tax legislation in the United States.
While it is unclear whether a meat tax will gain momentum in the United States, carbon taxes and taxes on sugar-sweetened beverages may continue to gain traction.
Continue the discussion on LinkedIn: Do you think that a tax on animal food products is likely in the United States?
Get a free trial to Bloomberg BNA Tax & Accounting's State Tax solution, a comprehensive research service that provides deep analysis and time-saving practice tools to help practitioners make well-informed decisions.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)