Grab A Beer Philadelphia, The Soda Is Too Damn Expensive

Tyler Durden's picture

Via SovereignMan.com,

What happened:

Turns out when soda cost the same as beer, people choose to drink beer. That is what is happening in Philadelphia.

The city’s 1.5 cent per ounce tax on soda has made beer a cheaper option. But that isn’t the only effect of the ill conceived plan to raise revenue.

The tax didn’t raise the money expected, according t o a study by the Tax Foundation.

Stores have already seen huge declines in soda sales, meaning people are either going outside the city to buy, buying beer instead, or not drinking soda.

Now if the residents did cut down on soda, some might see this as a win, despite the low tax revenue. But from the outset, the Mayor was quite clear that the aim of the tax was to raise money, not to influence health.

The city claimed the tax revenue would fund pre-kindergarten programs. But less than half of the meager revenue is actually being put into the school system.

What this means:

Looks like “for the children” was just another excuse for government greed.

Governments refuse to believe in economics. They think they can just continue to pile the taxes on. But once the costs get too high, people change their behavior.

Sometimes that means going somewhere else to buy your soda. Sometimes that means making different choices, like beer instead of soda.

But hardly ever do governments get what they predict. The mayor even originally wanted the tax to be 3 cents per ounce. Some stores are reporting a 50% drop in soda sales, so you can imagine what would have happened at double the tax rate. Yet all the greedy politicians imagine is dollar signs.

The beer companies are really the only ones who made out on the deal.

Might make a conspiracy theorist wonder...

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BiteMeBO's picture

All they have to do is figure a way to tax what comes out instead of what goes in.

Sub MOA's picture

they already do that it is your quarterly sewage usage fee ... as the old fucks said once upon a time ago "one day air will have a price tag on it"  oh and we are part way there with emmissions and shit...

Joe Trader's picture

High consumption of sugar and simple carbs plays a big role in many sicknesses...I know "tyler's" keying in on economics - but arguably, there are some gains from a healthier population that aren't as easily measurable, productivity and lower health care costs being some. It'll be nice if years later they report on the health impact..I guess these taxes only work on things that can't be substituted like cigarettes..

just the tip's picture

the tylers are not keying in on economics.

reading comprehension much?

Now if the residents did cut down on soda, some might see this as a win, despite the low tax revenue. But from the outset, the Mayor was quite clear that the aim of the tax was to raise money, not to influence health.

The city claimed the tax revenue would fund pre-kindergarten programs. But less than half of the meager revenue is actually being put into the school system.

Joe Trader's picture

You're the one with a lack of reading comprehension.

It's similar to rent controls - similar not exactly...and tax revenue is an economical question as well..

NoDebt's picture

Diet Coke (which contains no sugar) is also taxed under the Philly "soda tax".  The tax has NOTHING to do with health issues.  Sorry, but it just... doesn't.

<NoDebt lights up another cigarette, pours another vodka and air for himself and relaxes a bit, having just come back from vaca>

Miss me yet?  Heh heh.  I'm BAAAACK!

 

 

Joe Trader's picture

The government's goal was to generate tax revenue, which failed, just how rent controls fail to create an abundant supply of affordable housing = economics.

However, anytime you stop people from drinking high-sugar drinks - the fact is it will always have something to do with health issues - *take a deep breath* - which is seperate from the government's goal - yet is still there - no matter what :)

Doesn't help that people turned to alcohol - but the point is sin taxes seem to achieve their goal in generating tax revenue from cigarettes and alcohol - both of which are addictive, and difficult to substitute.

Son of Thor's picture

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N2OJoe's picture

Does GRAPE stand for Government RAPE?

Hmm.. I think we've discovered a new moniker for .gov crazies. Grapists? Grapeists?

MANvsMACHINE's picture

How does one define soda? What if I sold carbonated chocolate milk ? Is that considered soda? Coca Cola should launch a product line of carbonated drinks that are not called soda. Sell Coke under a different label as non-alcoholic Cola beer.

Donald J. Trump's picture

I don't know how they are differentitaing which beverages to tax, but perhaps Coke's answer is make Coke with alcohol.  Or use it's original original recipe with cocaine.  Might still be cheaper if it was medicine.

Pernicious Gold Phallusy's picture

When you carbonate milk, the pH drops so low the proteins curdle. Hard to sell gloppy slime chunks in a can.

Got The Wrong No's picture

You could sell it to Antifa to throw at people. 

XqWretch's picture

Just bought a 12 pack of Dos XX here in Philly for $20. Winning!

mkkby's picture

This has to be corrected.  I'm sure some bright lib will think of bringing back prohibition.  You know, for the children.

Sub MOA's picture

not a lib but I am all for it that should get some asses off the couch and into the mix reminds me of this song don't know why just seems the phrase blood in the streets always these days keeps coming to mind while reading the newz of za day

https://www.youtube.com/watch?v=syyxZdNK4vE

 

 

Stan522's picture

Gubamint uses "our vices" to leverage more money taken out of our pockets.... It's only a matter of time.....

It's NEVER about trying to fix something, such as cigarette taxes. They don't want you to stop smoking, otherwise, they would lose out on the revenue.....

Sub MOA's picture

I think it was Carlin who put it best ,,, we need a pussy usage tax all women should be equiped with a usage meter think of the cash flow that would generate

Pernicious Gold Phallusy's picture

Cash flow stops shortly after marriage. Can't have that.

political_proxy's picture

Twenty Bucks for Dos XX - who sold it to you, PT Barnum?

Stan522's picture

I need a beer NOW!

Seasmoke's picture

I always drink a beer instead of soda. And it's not because of cost. Too much bad sugar in one can of soda.

Stan522's picture

Both have carb's, but the ones in beer are more healthy. Plus.... you know the rest.....

StychoKiller's picture

Ah, beer!  A sandwich in every glass! :>D

nmewn's picture

Can you drink more than two sodas in a hour and still "legally" drive in the City of Botherly Luuuv or is that against the law now? 

nmewn's picture

lol...there is nothing on this Earth more retarded than Kalifornia government, its not even close. 

And thats really saying something considering the caliphate of ISIS, Burma and France ;-)

political_proxy's picture

there is nothing on this Earth more retarded than Kalifornia government, its not even close. 

you must get out more, mingle with the sheeple, you might change your mind

DarthVaderMentor's picture

Please, please, give Shitcago, Illinois and Comrade Di Blasio in NYC a chance to catch up!

ACES FULL's picture

Moar beer drinkers will be profitable for the cops,courts and lawyers.

silverer's picture

The amazing thing about passing a crappy law, is no matter how bad it is, they seem to always leave it on the books. It's like shit on the bottom of your shoe that never wears off. And the lawmakers keep putting more piles out there every day.

Nobodys Home's picture

I've always cleaned shit off the bottom of my shoe with a stick.

Sub MOA's picture

filthadelphia is an over run nigger shit hole left it 23 years ago and never once did nor do I miss that city for that fact never any other city either ...all of them are thirld world microcosims

Government needs you to pay taxes's picture

One an area goes black it never comes back.

Yen Cross's picture

 WE can't have a bunch of Vagabonds juiced up on reality.

Nobodys Home's picture

WAzzup wit dat? We be so reality juiced we jus vagabonding, havin fun, takin down monuments, spinning the juice and messin wit Asian lovin mofos that deal with forex.

Phillyguy's picture

I work in Philadelphia and pick up lunch at a lunch truck about once per week. From what I see, it is business as usual post soda tax. A 12oz can of Coke (searched on Google) has  39 grams of total sugar, which is about 9 1/3 teaspoons of sugar. Increased consumption of Coke, Pepsi and similar sugar laden drinks has helped create the explosion of Obesity and type II diabetes in the US. Why should US taxpayers be held hostage paying for the treatment of many of these individuals? Coke makes lots of profits selling unhealthy sugar water to the public. They should be directly taxed to cover these costs. Cigarettes, which cause heart disease, stroke and lung cancer are taxed - $1.01 federal excise tax + $2.60 PA state tax, while alcoholic beverages are also highly taxed. If anything Coke and related soft drinks are worse and should be taxed accordingly. The beverage industry is freaking out because they know that other cities across the country are watching how the soda tax works out in Philly. Bottom line- Coke and Pepsi are making a fortune selling unhealthy, sugar laden soda. They, along with McDonald's and other junk food outlets which have created the obesity crisis should be taxed accordingly. Come clean and deal with it!

sinbad2's picture

No the nanny state is the place where these fat fucks with diabetes get treatment. They should be humanely put down, fat fucks and low IQers damage the gene pool, and look what they have done to America?

Sugarcandy Mountain's picture

fat fucks and low IQers damage the gene pool

Damage? They've pretty much eviscerated it.

political_proxy's picture

processed food is far worse 

Inzidious's picture

Shrug. So some people need govt babysitting to do something healthy? Yeah no surprise there.

dchang0's picture

I could support you if you had said: "We should remove sugar and corn subsidies so that Coke can't get cheap corn syrup and has to pay the actual free market price, which would result in more-expensive Coke drinks and fewer sales, reducing diabetes," but you totally overlooked this moral route that helps consumers by reducing their taxes and chose the immoral "increase taxation" route.

hoytmonger's picture

It always amazes me that politicians enact taxes and then act surprised when people change their behaivior to avoid the tax.