The sugar program imposes quotas and price supports that restrict the supply of lower-priced sugar. The beneficiaries are fewer than 5,000 wealthy beet and sugar-cane producers, to the tune of an extra $1.4 billion a year - $280,000 apiece, on average. Lobbyists grease the wheels of Congress to keep this gravy train rolling.
But Americans consumers pay about 50 percent more than the world price of sugar. We’re talking an extra $2.8 billion, which is twice as much as the government gravy to the sugar producers. The average American pays an extra $9 a year, which Congress knows you won’t notice.
This hidden tax is regressive, because the poor pay a larger percentage of their income for sugar.
The program also costs jobs. If U.S. sugar prices fell to the world price, food processors, bakeries, and candy makers would hire about 20,000 additional workers – more than the number of agricultural jobs supported by the government help.
Concentrated benefits to a few, rich producers, with the costs spread widely to all Americans: There are scores of these horrendous policy distortions. Members of Congress who vote for them and receive campaign gifts for them should be retired.
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