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re: philly soda tax only brings in 30% of expected receipts in first month

Posted on 2/22/17 at 12:38 pm to
Posted by AUbused
Member since Dec 2013
7770 posts
Posted on 2/22/17 at 12:38 pm to
Isnt this like any other "sin" tax?
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
421511 posts
Posted on 2/22/17 at 12:39 pm to
quote:

Woah. What a stupid idea.


it's only stupid if the stores don't engage in price gouging

quote:

Mayor Jim Kenney, who proposed the soda tax and championed its passage through city council last year, told reporters on Tuesday it's not the new 1.5-cents-per-ounce tax that's making it more expensive to buy a can of Coke in Philly. No, according to the mayor, those higher prices are caused by city businesses price gouging their customers in order to stir up opposition to the tax.

"They're gouging their own customers," Kenney said, KYW News reports.


quote:

In the real world, those sandwich shops and grocery stores, of course, are adjusting the retail price of sugary drinks to make up for the added cost imposed by the tax. Some of them have posted signs to inform customers why drink prices have skyrocketed.

Kenney doesn't like that. He called those efforts "wrong" and "misleading" and suggested that it could be an extension of the expensive fight put up by soda companies, retailers, and even the city's Teamsters Union in a failing effort to prevent the tax from passing in the first place.

"This is what they do," Kenney told KYW News. "And they'll continue to lose because their legal case is not sound and their public case is not sound."


Posted by slackster
Houston
Member since Mar 2009
84609 posts
Posted on 2/22/17 at 12:43 pm to
quote:

This is what they do," Kenney told KYW News. "And they'll continue to lose because their legal case is not sound and their public case is not sound."


I'm not sure what their legal case is, it their public case seems to have already been settled. People aren't buying sweetened drinks, period.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
421511 posts
Posted on 2/22/17 at 12:48 pm to
quote:

People aren't buying sweetened drinks, period.

wrong

they're buying sugary drinks

just right outside the city
Posted by Mike Honcho
North Dallas
Member since Oct 2007
2918 posts
Posted on 2/22/17 at 12:49 pm to
This is only in the city limits of Philadelphia. People are already going across the delaware river and hitting up those 5- 12packs for $11 deals and bringing them back into the city. He has done nothing but hurt his constituents and enrich the surrounding communities.
Posted by UGATiger26
Jacksonville, FL
Member since Dec 2009
9044 posts
Posted on 2/22/17 at 12:49 pm to
quote:

No, according to the mayor, those higher prices are caused by city businesses price gouging their customers in order to stir up opposition to the tax.

"They're gouging their own customers," Kenney said, KYW News reports.


Well, a 1.5 cent tax on a case of 12oz cokes (288oz) would be $4.32.

Assuming that case of coke was about $12 before, we're talking about a 30+% increase in cost.

The people are being price-gouged alright. But it's by the government, not the retailers.
This post was edited on 2/22/17 at 12:51 pm
Posted by imjustafatkid
Alabama
Member since Dec 2011
50304 posts
Posted on 2/22/17 at 12:49 pm to
quote:

Isnt this like any other "sin" tax?


Sales taxes are the only types of taxes I'm okay with, but this tax is dumb. It's far too high. It would be cheaper to drive out of town and buy all of your sweetened beverages there. They really didn't put a lot of thought into this.
Posted by slackster
Houston
Member since Mar 2009
84609 posts
Posted on 2/22/17 at 12:49 pm to
quote:

they're buying sugary drinks

just right outside the city


Touche.
Posted by imjustafatkid
Alabama
Member since Dec 2011
50304 posts
Posted on 2/22/17 at 12:51 pm to
quote:

they're buying sugary drinks

just right outside the city


Next they'll enact prohibition-era type laws against transporting a certain amount of sugary beverages into the city at one time.
Posted by GetCocky11
Calgary, AB
Member since Oct 2012
51240 posts
Posted on 2/22/17 at 12:52 pm to
quote:

it's only stupid if the stores don't engage in price gouging


quote:

Newswork's Katie Colaneri visited Carbonator Rental Services in Philadelphia to break down the math. The distributors sells five-gallon boxes of syrup that can be used in soda fountains, and each box costs a retailer about $60.

Thanks to the city's new tax, though, retailers have to pay $57.60 in taxes for each of those boxes of syrup.

"We're not talking about a couple of bucks on a $60 item," Andy Pincus, who owns Carbonator Rental Services, told Newsworks. "We're talking about $57.60 on a $60 item. It's too big not to pass on."


I mean, it is hard to argue with that.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
421511 posts
Posted on 2/22/17 at 12:52 pm to
quote:

Next they'll enact prohibition-era type laws against transporting a certain amount of sugary beverages into the city at one time.

they'll probably also do some sort of labeling/licensing system

government loves that shite
Posted by CarrolltonTiger
New Orleans
Member since Aug 2005
50291 posts
Posted on 2/22/17 at 12:52 pm to
quote:

Taxes on inelastic products and services work. Not so much on soft drinks, it's pretty obvious that it discourages purchasing them.


Or you buy them in an adjoining jurisdiction.
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
421511 posts
Posted on 2/22/17 at 12:53 pm to
quote:

Assuming that case of coke was about $12 before, we're talking about a 30+% increase in cost.

The people are being price-gouged alright. But it's by the government, not the retailers.


the mayor expects the store to eat that increase, i think

raising the price with the tax is "price gouging"
Posted by slackster
Houston
Member since Mar 2009
84609 posts
Posted on 2/22/17 at 12:56 pm to
Idk what the mayor is trying to do, but I wonder how this passed in the first place. Customers quite obviously were against it.
Posted by UGATiger26
Jacksonville, FL
Member since Dec 2009
9044 posts
Posted on 2/22/17 at 1:02 pm to
quote:

the mayor expects the store to eat that increase, i think

raising the price with the tax is "price gouging"


Ah, I see now. The tax isn't supposed to "apply" at the retail level.

So, if I'm a small family-owned restaurant that sells cans of soft drinks, and I buy 1000 cans wholesale to replenish my inventory, I'm slammed with $18,000 in extra taxes? And I'm just supposed to take that out of my profit margin? That probably IS my profit margin!

This mayor is an imbecile. So are the people who actually thought this would be a good idea.
This post was edited on 2/22/17 at 1:03 pm
Posted by chalmetteowl
Chalmette
Member since Jan 2008
47474 posts
Posted on 2/22/17 at 1:02 pm to
quote:

the surrounding communities.
these people probably consider themselves Philadelphians too
Posted by Mike Honcho
North Dallas
Member since Oct 2007
2918 posts
Posted on 2/22/17 at 1:05 pm to
quote:

Idk what the mayor is trying to do, but I wonder how this passed in the first place. Customers quite obviously were against it.


Their city council has 17 members, 14 of which are democrats plus a Democrat mayor. Governing against the will of the people comes naturally to them.
This post was edited on 2/22/17 at 1:07 pm
Posted by SlowFlowPro
Simple Solutions to Complex Probs
Member since Jan 2004
421511 posts
Posted on 2/22/17 at 1:16 pm to
Tax will benefit poor people!

quote:

Pennsylvania has an inherently regressive tax structure enshrined in its constitution, and its inequity has been discussed and grappled with for years, without any progress. The disproportionate tax burden the state's poorest currently shoulder might never be addressed.

In actuality, enacting a soda tax in Philadelphia might very well turn out to be one of the most equitable taxes in the commonwealth. Advocates of fair taxation ought to train their sites on extant taxes that currently penalize the poor and benefit the rich.

This is particularly the case when progressive Philadelphians learn that most of the untreated or poorly managed diabetes, heart disease and other health problems linked with excessive sugary beverage intake are found among lower-income individuals. In Philadelphia, this means the poor would gain from the revenue of the tax, and their health also would increase.


Posted by buckeye_vol
Member since Jul 2014
35236 posts
Posted on 2/22/17 at 1:26 pm to
quote:

In actuality, enacting a soda tax in Philadelphia might very well turn out to be one of the most equitable taxes in the commonwealth.
I mean a consumption tax on a non-necessity (I guess diabetics who need to raise their blood sugar aside) is a pretty fair, but I'm curious who was actually taxed.

I would imagine wealthier individuals have better means of transportation, or live near other municipalities to access the same products and avoid the tax. Although, they may be less inclined to care too.

Either way, what a bunch of moral mumbo jumbo.
Posted by mauser
Orange Beach
Member since Nov 2008
21440 posts
Posted on 2/22/17 at 1:29 pm to
I bet the mob is already bootlegging soda into the city.
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