Baltimore City Beverage Tax (Mayo: sales, houses, buying)

[newlocustpt]

I don't know if any of you have heard this yet, but the Newly Re-elected mayor wants to raise taxes again... I am a bit frustrated and wanted to see what other have to say... Sorry for ranting, I am just sick of seeing Baltimore be unfriendly to businesses




The Mayor is currently trying to raise the Baltimore Beverage tax by 150%. A tax increase like this will not only hurt the people of Baltimore, but it will also hurt business, both small and large. Raising taxes in the fragile state of our economy will be a hindrance and will lead to the loss of even more jobs. It is unfair to the people and businesses of Baltimore for the mayor to raise this tax.



Studies have shown that taxes on consumer products such as beverages are regressive to citizens that are in the lower tax brackets. This ultimately means everyone will have less money in their pockets, further straining everyone’s financial situation. Also, with a tax of this magnitude, major Corporations (and small businesses alike) such as Pepsi and Coca-Cola will close their plants/warehouses/stores in the city and relocate outside of the city – this means more job losses and less tax revenue for the city.

We as residents of this city, already pay enough in Income and Property taxes – now is the time to speak up and say “Enough is enough.”

While the proposed tax is going to help renovate schools (which is a great thing), does anyone else feel that this will cause more even more strain on the Baltimore City economy?

[EdwardA]

Baltimore, aka Detroit Jr., is on the fast lane to oblivion.

[MrRational]

Originally Posted by newlocustpt

Studies have shown that taxes on consumer products such as beverages are regressive
to citizens that are in the lower tax brackets.
Maybe; but they pay so little in taxes otherwise...

We as residents of this city, already pay enough in Income and Property taxes
– now is the time to speak up and say “Enough is enough.”
Well, some do.

...does anyone else feel that this will cause more even more strain on the Baltimore City economy?
Nope. Mostly it's just window dressing.

hth

[newlocustpt]

I pay a lot of taxes. A tax increase on an everyday consumable would hurt citizens+retailers.

If the city loses more jobs (Pepsi has 300 at their Baltimore Plant, not sure how many at Coke... also think about mom & pop stores that could suffer..)+more tax revenue, it is going to be in a worse position...right?

[MrRational]

Originally Posted by newlocustpt

If the city loses more jobs (Pepsi has 300 at their Baltimore Plant, not sure how many at Coke... also think about mom & pop stores that could suffer..)+more tax revenue, it is going to be in a worse position...right?

Are you trying to say that the consumption of Pepsi and Coke...
is some sort of a net positive gain for the City and should have tax benefits to promote that?

[End-User]

To be honest, I was laughing pretty hard when I heard the proposed tax increase in the same week she was re-elected. Of course she didn't mention it during the race, with every single opponent supporting tax cuts, but that she didn't wait a second longer shows a sort of self-assured "I-dare-you-to-challenge-this" mentality that would make me cheer if she were playing a game of chess.

And then I found out the reason for the 150% tax increase: the current rate failed to produce the expected revenue. From what I understand, this was being treated like a vice tax intended to stop people from consuming unhealthy soft drinks. If the tax generated a $1 million less than expected, the vice tax worked!

But the mayor says she still needs that revenue, and she is diverting it to school construction instead of the original purpose of funding (street maintainance? the health department? I don't recall). Of course it is predicted that $2.8 billion is needed for school renovations city-wide, and the bottle tax will only be a drop in the bucket even if brings in as much money as expected. But I have no confidence that funds intended to go to schools will actually get there and predict any revenue raised will disappear into a general fund.

[janetvj]

I am neutral on the idea of the increase in this tax, but feel compelled to dispute the notion that it would have a negative impact on jobs at a bottling plant. The tax is on the consumer who buys the bottled beverage within city limits and not on the manufacturer or the wholesaler. Yes, it may have an impact on retail sales of these products within the city limits, although I doubt it would be substantial. People will still but these products, and for most the cost of traveling to a store outside the city to buy them would be more expensive than paying the additional tax.

[HandsUpThumbsDown]

I feel like local watering holes have already jacked their prices up. Anyone else notice that?

[redd1skng]

Originally Posted by newlocustpt

I don't know if any of you have heard this yet, but the Newly Re-elected mayor wants to raise taxes again... I am a bit frustrated and wanted to see what other have to say... Sorry for ranting, I am just sick of seeing Baltimore be unfriendly to businesses




The Mayor is currently trying to raise the Baltimore Beverage tax by 150%. A tax increase like this will not only hurt the people of Baltimore, but it will also hurt business, both small and large. Raising taxes in the fragile state of our economy will be a hindrance and will lead to the loss of even more jobs. It is unfair to the people and businesses of Baltimore for the mayor to raise this tax.



Studies have shown that taxes on consumer products such as beverages are regressive to citizens that are in the lower tax brackets. This ultimately means everyone will have less money in their pockets, further straining everyone’s financial situation. Also, with a tax of this magnitude, major Corporations (and small businesses alike) such as Pepsi and Coca-Cola will close their plants/warehouses/stores in the city and relocate outside of the city – this means more job losses and less tax revenue for the city.

We as residents of this city, already pay enough in Income and Property taxes – now is the time to speak up and say “Enough is enough.”

While the proposed tax is going to help renovate schools (which is a great thing), does anyone else feel that this will cause more even more strain on the Baltimore City economy?

Problem: Revenue is needed.

Question: What would be your solution?

[K-Luv]

Originally Posted by janetvj

I am neutral on the idea of the increase in this tax, but feel compelled to dispute the notion that it would have a negative impact on jobs at a bottling plant. The tax is on the consumer who buys the bottled beverage within city limits and not on the manufacturer or the wholesaler. Yes, it may have an impact on retail sales of these products within the city limits, although I doubt it would be substantial. People will still but these products, and for most the cost of traveling to a store outside the city to buy them would be more expensive than paying the additional tax.

Some people just don't want to pay any tax and that is that. I lived in Maine when voters shot down a proposed beverage tax that would have added roughly 1.5 cents per bottle. Pretty damn insignificant if you ask me, but many people claimed that a tax is a tax and we are taxed enough. The tax was supposed to help fund the State's healthcare system...which most Mainer's use....but that got obscured in the anti beverage tax campaign. Ironically, after the vote many Mainer's said if they knew where the tax was going, they would have voted for it. And Maine, as a whole, is a helluva lot poorer than Baltimore City.

But, here is the thing: raising the bottle tax from 2 cents to 5 cents is not that significant, either. If you are so damn poor that you cannot afford the extra few pennies (literally, 3 more cents) on your Mt. Dew or Purple Drink, then you cannot afford those beverages in the first place. Honestly, most consumers will not notice unless they are buying cases upon cases at a time.

Look at cigarette taxes. One of the reasons why cigarette taxes raise so significantly each time is the hope that the new higher price will price a pack of smokes out of reach for smokers. Did that ever work? Maybe for one or two smokers, but seriously it hasn't.

The only reason to be opposed to this beverage tax is on the grounds that the city/county is not managing its money very well. Like it or not, and this would be true under any political party administration, taxes are how the Government makes its money. If you do not like it than the only real solution is to vote in political leaders who know how to run a business. And lets face it, Government is a business (and since we are a Capitalist society, it should be).

Originally Posted by HandsUpThumbsDown

I feel like local watering holes have already jacked their prices up. Anyone else notice that?

After living in Minneapolis and Boston, Baltimore bar prices are cheap by comparison. It depends on what you drink, though. Some of the more obscure craft beers can be a bit pricey.