How's the sugary drink tax working out? (McDonald, Penn: public school, sales tax)

[JacksonPanther]

This is no different than gas taxes.

Gas taxes find road repairs and improvements. But the tax also incentivizes people to drive less, get a more fuel efficient vehicle, take public transportation. All of which reduce gas tax income. So the result is that they raise the gas tax on the people that remain...

[HappyRider]

Originally Posted by AJNEOA

I'm not saying I'm against this provision (I also consume zero sugar drinks), but it is counter-intuitive in its cause because if it reduces soda consumption (good), it takes money away from schools (bad). Kind of strange.

Thanks. I seem to have a hard time getting this seemingly simple point across!

[HappyRider]

Originally Posted by JacksonPanther

This is no different than gas taxes.

Gas taxes find road repairs and improvements. But the tax also incentivizes people to drive less, get a more fuel efficient vehicle, take public transportation. All of which reduce gas tax income. So the result is that they raise the gas tax on the people that remain...

Your logic is only partially correct. They sneak in the gas tax so no one notices. They just raised it by another 8 cents. Nobody noticed. With the soda tax, the tax is 50% of the price of the product. I buy 1 liter bottle of coke for $1. The tax on it is 51 cents. A 12 pack went from $5.99 to $8.59 overnight! If the goal is to make people stop buying soda (in the city), they will succeed.

[1ondoner]

Sugar is bad for your health but marijuana is good for your health.

A month without Sugar - The Opinion Pages | OP-ED COLUMNIST

Originally Posted by Pennsport

Hmm... looks like the end of sugar water isn't all that far away.

https://www.yahoo.com/finance/news/c...211350342.html

[Pennsport]

Originally Posted by HappyRider

Thanks. I seem to have a hard time getting this seemingly simple point across!

Wait, wait, wait. Isn't this tax just an EXTRA bonus to the normal contribution of education? We're certainly not relying on this tax to fund the entire city public school system. So basically, it's:

a) We incorporate this tax and START a previously NONEXISTENT and much needed pre-school program; or
b) We do not incorporate this tax and we have ZERO pre-school program

Seems to me that starting something that's extremely helpful to city residents is a heck of a lot better than not starting it. No?

[BPP1999]

Originally Posted by HappyRider

Your logic is only partially correct. They sneak in the gas tax so no one notices. They just raised it by another 8 cents. Nobody noticed. With the soda tax, the tax is 50% of the price of the product. I buy 1 liter bottle of coke for $1. The tax on it is 51 cents. A 12 pack went from $5.99 to $8.59 overnight! If the goal is to make people stop buying soda (in the city), they will succeed.

The original tax was going to be 3 cents per ounce and not apply to diet drinks. I believe the 1.5 cents per ounce tax as passed does apply to diet drinks.

It might not be a bad idea to slap a tax on all drinks except water, milk, baby formula, and 100% fruit juices. In other words, tax all sodas, iced teas, coffee sold by the cup, beer, wine, etc. Lower the tax to 0.5 cents per ounce, or perhaps even less. Spread the pain around to everyone but lower the tax so, as you say, no one notices.

I believe Rendell tried to raise the state beer tax at the same time he was trying to raise the cigarette tax but the lobbyists stopped this in its tracks.

[AJNEOA]

What's interesting is that this will impact the poor the most. The poor are least likely to quit (just like smoking), draining more of their income for something that they prioritize. And I can't throw stones, because I drink alcohol and pay high taxes, so who am I to say they shouldn't spend money on something they like? So, it will further impoverish those who refuse to give it up.

Another interesting potential side effect, is that there are a few locally made sodas that are pretty fantastic and MUCH healthier than Pepsi or Coke. They are likely to weather the storm less successfully than the conglomerates, weeding out a pretty positive take on a commonly lousy product.

What is most frustrating, from my perspective, is that industrialized food is once again spared. Rather than the FDA, which is worthless, regulating highly unhealthy drinks at the source and enforcing healthy ingredients in all foods, the customers/poor are beat up. It happens all the time. Our food system is in shambles and the government is making it happen.

But I am happy to see money land in school coffers, while hopefully seeing consumption of HFCS and other terrible ingredients reduce.

[Flyers Girl]

You know what I just love about sin taxes? They supposedly add them to things that are "bad" for us, ostensibly to get us to cut back on said "bad" thing. But as governments tend to do, they then get addicted to the revenue from the tax. So what happens to all these pre-schools when people do what the tax intended, namely, cut back on soda, thereby lowering tax revenues?


I'll just chuckle when that happens.

[Gerania]

Originally Posted by Pennsport

Hmm... looks like the end of sugar water isn't all that far away.

https://www.yahoo.com/finance/news/c...211350342.html

I don't feel deceived and confused.

[HappyRider]

Originally Posted by Flyers Girl

You know what I just love about sin taxes? They supposedly add them to things that are "bad" for us, ostensibly to get us to cut back on said "bad" thing. But as governments tend to do, they then get addicted to the revenue from the tax. So what happens to all these pre-schools when people do what the tax intended, namely, cut back on soda, thereby lowering tax revenues?


I'll just chuckle when that happens.

Exactly! And to those who are new at this game and feel good about themselves supporting kids, once you give money to the government, you have no idea where it will be spent. There is no "lockbox." Do they spend toll money to fix the roads? Oh, remember the tobacco settlement money that was supposed to go toward lung cancer treatment? Well, let's just say it didn't go according to the plan!