Mixed

Earmarking (hypothecating) health tax revenues for specific health objectives increases public support for the tax and political sustainability, whereas using revenues for general fiscal purposes leaves the tax vulnerable to lobbying and repeal.

To ensure health taxes survive political pressure, governments must earmark the revenue for specific health-related spending, such as subsidizing healthy foods or targeting child obesity. This builds public support and protects the tax from industry lobbying that often leads to repeal when revenues go into the general fund.