Shoppers, markets lose with Philly soda tax

[J P Sousa]

http://www.philly.com/philly/opinion/20170212_Commentary__Shoppers__markets_lose_with_Philly_soda_tax.html

From an economic standpoint, the Philadelphia beverage tax is a lose-lose situation - for consumers and city grocery stores. One month into the new law, the effect on both is greater than many anticipated.   

Philadelphia rang in the new year with a controversial new beverage tax on soda and other sugar-sweetened drinks. The tax, which went into effect on Sunday, is the first one of its kind in a major city in the United States.

While the tax is technically 1.5 cents per ounce, which doesn’t sound too terrible, when buying a 10-pack of 20 oz bottles those numbers climb pretty quickly. In this case, a 10-pack of Propel flavored water that originally retailed for $5.99 had an additional three dollars tacked on to it in taxes.

http://www.zerohedge.com/news/2017-01-04/ignorant-masses-shocked-philly-beverage-tax-impact
   

Go to the link for amusing post.

[thundley4]

Punitive taxes always backfire. Illinois raised taxes on tobacco products and their tobacco tax revenue dropped. People living near state borders suddenly found it cheaper to go out of state.

That is likely happening in Philly, too.

[DLR Pyro]

A new source of revenue for Indian tribes nearby Philly....

[BlueStateSaint]

A new source of revenue for Indian tribes nearby Philly....

Or for towns in New Jersey just across the river . . .

[Mr Mannn]

smugglers sold cigarettes in high tax states. soda can be a new cash crop. philly is only so big.