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Economics Discuss Philadelphia’s Soda Tax Bombed As Predicted at the Political Forums; I don't leave the city explicitly for soda, but when I'm out of the city doing other things, I usually ...

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Old 05-19-2019, 12:09 PM
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Default Philadelphia’s Soda Tax Bombed As Predicted

I don't leave the city explicitly for soda, but when I'm out of the city doing other things, I usually pick some up...:Just like thousands of others...

CNN tried to spin it as if the loss of revenue means the city-folk are drinking healthier...Not even close...

Philadelphia’s Soda Tax Bombed As Predicted

Quote:
Back when Philadelphia decided to join the ranks of liberal cities fleecing its inhabitants with a soda tax to “improve their health,” we predicted here that it was going to backfire. The effects were felt almost immediately when workers starting losing their jobs at Pepsi. But still, they persevered and stuck with it. Surely people would start opting for healthier beverage options and those big tax revenues would begin streaming in to fill the city’s coffers. Now that they’ve been at it for well over a year, how did it work out? Sales in local retail outlets have plunged by more than 50% and mysteriously people are still drinking soda. (CNN)

Quote:
Implementing a sales tax may help get Americans to stop drinking sugary drinks, if a new study about Philadelphia soda consumption is any indication.

In 2017, Philadelphia became the second US city to put a tax on sugary drinks and soda. In the wake of the tax, sales on those beverages dropped by a whopping 51% in the first year, according to a study published Tuesday in the medical journal JAMA.

The study compared beverage costs and sales in Philadelphia — following implementation of the 1.5 cents per ounce tax — with Baltimore, which has a similar demographic but doesn’t have the same sales tax. With the tax, beverages in Philadelphia jumped from 5.43 cents per ounce in 2016 to 6.24 cents in 2017.
Take note of how CNN chooses to open the story and the way they phrase the results. Having a sales tax of this type “may help get Americans to stop drinking sugary drinks.” Oh, so it “may,” eh? If all you read was the first few paragraphs, you might come away with the impression that this was the goal all along and it must have worked, right? A 51% decline in sales surely must mean healthier lifestyles are sweeping the city.

But that’s only if you stopped reading there. Just as happened in so many other municipalities, the report shows that soda sales in neighboring counties and towns mysterious shot up at the same time. From the article, emphasis added:

Quote:
While researchers found that sales of sugary beverages fell in Philadelphia after the tax, beverage sales in nearby towns and counties without the tax went up. That suggests people may have been traveling to get their soda at a reduced price.
Wonders never cease. People stopped buying their soda in the city (and almost undoubtedly a lot of other shopping list items) and decided to shop where prices were lower. The study they reference also goes on to note that there was no corresponding increase in sales of bottled water or healthier beverage options. And as for the revenue question? They don’t even delve into that, but you can do the math easily enough. The tax on soda increased by 17%, but the sales fell by 51%.

So, let’s look at this assuming one million ounces of soda was sold anually before the tax went into effect. If sales had remained the same, the city would have realized $62,400.00 in revenue instead of $54,300.00. But with the volume cut in half, they managed to slash their revenue to $31,200.00. (I was told there would be no math. Apparently City Hall in Philadelphia was operating on the same assumption.) Great job, guys. You gutted your revenue stream, caused layoffs in the beverage industry and depressed sales in the city’s retail outlets, likely impacting entry level jobs.

But how can we blame them? I mean, who could possibly have predicted this? Well… anyone who was paying attention. The same thing happened in Chicago. It happened again in Seattle. And it nearly happened in several more California cities until the governor was forced to agree to a ten year moratorium on new soda taxes.
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Old 05-20-2019, 03:48 PM
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Default Re: Philadelphia’s Soda Tax Bombed As Predicted

It's funny that Progressives never learn from their mistakes. They ignore evidence to the contrary when they come up with these tax plans and proceed as if it has never before been attempted. Common sense would dictate that with lower priced options readily available in neighboring districts, it is only logical that people would choose to purchase their beverages there.

But apparently, asking a progressive to employ logical thought prior to implementing a tax is asking too much.
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Old 05-20-2019, 10:54 PM
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Default Re: Philadelphia’s Soda Tax Bombed As Predicted

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Originally Posted by GetAClue View Post
It's funny that Progressives never learn from their mistakes. They ignore evidence to the contrary when they come up with these tax plans and proceed as if it has never before been attempted. Common sense would dictate that with lower priced options readily available in neighboring districts, it is only logical that people would choose to purchase their beverages there.

But apparently, asking a progressive to employ logical thought prior to implementing a tax is asking too much.

I would say that progressives are completely free from the ravages of intelligence.
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Old 05-20-2019, 10:59 PM
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Default Re: Philadelphia’s Soda Tax Bombed As Predicted

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Originally Posted by GetAClue View Post
It's funny that Progressives never learn from their mistakes. They ignore evidence to the contrary when they come up with these tax plans and proceed as if it has never before been attempted. Common sense would dictate that with lower priced options readily available in neighboring districts, it is only logical that people would choose to purchase their beverages there.

But apparently, asking a progressive to employ logical thought prior to implementing a tax is asking too much.
The tax is not about raising revenue, it's about extending government control over people.
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Old 05-20-2019, 11:53 PM
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Default Re: Philadelphia’s Soda Tax Bombed As Predicted

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The tax is not about raising revenue, it's about extending government control over people.
And "for their own good"...
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Old 05-21-2019, 07:05 AM
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Default Re: Philadelphia’s Soda Tax Bombed As Predicted

liquor, tobacco, drugs, guns, sodas etc etc..
Gov't loves to control people.
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Old 05-21-2019, 07:10 AM
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Default Re: Philadelphia’s Soda Tax Bombed As Predicted

However... corporations shouldn't be allowed to LIE to people about their crap products.

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Old 05-21-2019, 07:11 AM
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Default Re: Philadelphia’s Soda Tax Bombed As Predicted

Here is some stats on cigarette smoking , also a target of increased taxes 'for your own good'.

Me thinks the reduction in the number of smokers is likely more geared towards the general 'health' trend, then the cost (driven by taxes). I'm an ex-smoker, and if I really wanted a cigg, I flinched at the price, and bought it anyway. Of course, I would stock up of I found a less expensive source. I'd have to believe the same of those soda-dependent.

https://www.cdc.gov/tobacco/data_sta...king/index.htm

Taxing authorities always believe they are doing something good, and the income from the additional revenues become 'necessary' to them. Losing that revenue just pushes them to find other things they can tax, or increase the tax.... feeding the beast is the end goal.
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Old 05-21-2019, 07:14 AM
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Default Re: Philadelphia’s Soda Tax Bombed As Predicted

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Originally Posted by mr wonder View Post
However... corporations shouldn't be allowed to LIE to people about their crap products.

Back when they didn't have a complete understanding of the effects, it didn't start out as 'lying'.

After all, asbestos was once considered a miraculous building material.... it's after they start finding out about the issues and 'side effects', and continue promoting the product, that my hackles go up.....
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Old 05-21-2019, 09:53 AM
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Default Re: Philadelphia’s Soda Tax Bombed As Predicted

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Originally Posted by GottaGo View Post
Here is some stats on cigarette smoking , also a target of increased taxes 'for your own good'.

Me thinks the reduction in the number of smokers is likely more geared towards the general 'health' trend, then the cost (driven by taxes). I'm an ex-smoker, and if I really wanted a cigg, I flinched at the price, and bought it anyway. Of course, I would stock up of I found a less expensive source. I'd have to believe the same of those soda-dependent.

https://www.cdc.gov/tobacco/data_sta...king/index.htm

Taxing authorities always believe they are doing something good, and the income from the additional revenues become 'necessary' to them. Losing that revenue just pushes them to find other things they can tax, or increase the tax.... feeding the beast is the end goal.
Remember Prohibition? The unintended consequences of the protection from alcohol were far worse than the disease. Legalization of marijuana is all the rage but sugary drinks have to be taxed out of existence.
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