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Tax Plan Fails Spectacularly in Philly

#1

The Law of Unintended (but easily predicted) Consequences strikes again. Fewer jobs, pay reductions, and less revenue for the city's coffers; who'da thunk?

BACKFIRE: Philadelphia Implemented Soda Tax, But It Didn't Go As Planned

FTA: “The beverage tax fell on about 4,000 items. In Acme city stores, soda sales dropped as much as 80 percent. Sales of other items covered by the tax, such as juices, creamers and energy drinks, were down 30 percent, and the number of customers declined by 5 percent. Philly stores cut an average of 150 to 200 employee hours per week, resulting in lighter paychecks for employees."

Did it help with the health issues? Nope.

[font=lato, sans-serif]“Philadelphia did not see an increase in sales of untaxed beverages such as bottled water,” CNN reported.[/font]

What did happen? People adapted a different way.

[font=lato, sans-serif][font=lato, sans-serif]FTA: “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.”[/font][/font]
“An empty vessel makes the loudest sound, so they that have the least wit are the greatest babblers.”. - Plato

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Tax Plan Fails Spectacularly in Philly - by flsprtsgod - 05-21-2019, 11:34 AM



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