Posted on 01/14/2019 3:03:27 PM PST by Politically Correct
Philadelphia’s outlandish soda tax is what Democratic-party politics looks like when it lets its freak flag fly. So many classic elements are there: (failed) social engineering and “think of the children!” on one side, paid for with a punitive tax on poor people and destroyed businesses, which means destroyed jobs, which in turn means lives upended. What lives? Greedy capitalists with monocles, maybe? No, they’ll be fine. Think of ex-cons trying to regain their footing in society.
To review this debacle, in 2017 Philadelphia, seeking to fund a universal pre-K program, slapped mammoth sin taxes on Coke and Pepsi (and even Diet Coke and Diet Pepsi). Sweetened sodas (but not natural fruit juices) were hit with a huge tax of 1.5 cents per ounce, raising the price of a two-liter bottle of soda by roughly 67 percent. Philadelphia hoped to raise money and decrease obesity with one ingenious move. Who could have predicted what happened next?
The health benefits turned out to be nil. “The tax was ineffective at reducing consumption of unhealthy products,” reports a new study by Stephan Seiler of Stanford, Anna Tuchman of Northwestern, and Song Yao of the University of Minnesota. Poor Philadelphians were hardest hit by the tax because residents with the means to leave the city to make their soda purchases — the well-off — did so. A 42 percent decrease in soda sales within city limits was more than made up for by a large increase in soda sales in stores within two miles outside Philly. And the expected gusher of revenue didn’t quite materialize either, as receipts fell about 15 percent short of projections.
(Excerpt) Read more at nationalreview.com ...
Beer would be healthier.
But, but, but ... our intentions were good! The social engineers said that it would work this time! Who knew that purchasing decisions would be based on a short trip outside the city limits!
FYI: Philadelphia City government has been solidly ‘D’ since the 1930s!
No, because at least soda can’t get you drunk.
Are you talking about my organic GMO free probiotic health drink?
Beer won’t get you drunk unless you exceed the doctors prescribed maximum dosage then that’s all on you. 4 oz. and you’re still fine.
“So they buy beer instead! “
particularly since it’s now cheaper than soda in Philly ...
Sweetened sodas (but not natural fruit juices) were hit with a huge tax of 1.5 cents per ounce, raising the price of a two-liter bottle of soda by roughly 67 percent... residents with the means to leave the city to make their soda purchases... did so. A 42 percent decrease in soda sales within city limits was more than made up for by a large increase in soda sales in stores within two miles outside Philly... [tax] receipts fell about 15 percent short of projections.
The real target? "Nuisance establishments".
What really happens.
Folks in Philly drive or take a bus a few miles to suburbia (Philly is not really that big a city and you can escape in just a few miles).
They buy their soda in the suburbs. In bulk. They buy much more than they would normally buy (and thus drink lots more) because why make an extra trip. They also do their regular food shopping while they are there in suburbia too.
So to summarize the Philly Soda Tax:
People in Philly buy more soda (just in the suburbs)
People in Philly drink more soda (cause there is more in the house now)
People in Philly buy more of their food in the suburbs (why not? I am here anyways and the place is nicer)
Philly stores lose customers
Philly stores close
Philly has more and more food deserts
And all in all, the City of Philadelphia actually collect less taxes. And the health of their citizens goes down...
I did. . . It was obvious.
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