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Democrats Appalled That Policy Achieved Desired Results

Posted by V the K at 7:13 pm - February 26, 2017.
Filed under: Economy

The Democrat-Run city of Philadelphia passed a massive tax on beverages last year, to the cheers and applause of the Democrat Media Complex and left-wingers everywhere. However, increasing the cost of these beverages by 100% has had economic consequences.

Two months into the city’s sweetened-beverage tax, supermarkets and distributors are reporting a 30 percent to 50 percent drop in beverage sales and are planning for layoffs.

One of the city’s largest distributors says it will cut 20 percent of its workforce in March, and an owner of six ShopRite stores in Philadelphia says he expects to shed 300 workers this spring.

This is what they wanted, right? To get people … in particular, poor people… to stop drinking beverages they didn’t approve of.

But now, the same people who passed the tax are getting all nasty about the effects of their tax.

“I didn’t think it was possible for the soda industry to be any greedier,” Kenney said in an emailed statement. “ … They are so committed to stopping this tax from spreading to other cities, that they are not only passing the tax they should be paying onto their customer, they are actually willing to threaten working men and women’s jobs rather than marginally reduce their seven figure bonuses.”

So, these Democrat geniuses passed a massive tax increase with the intention that by making soda less expensive, people would consume less of it. Now, they are feigning outrage that the tax is actually making soda more expensive and people are consuming less of it. But businesses, I guess, are supposed to just eat their losses and not realign their workforces in response?

This is like the people who gleefully passed minimum wage hikes and are wondering why all the restaurants are closing.

 

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18 Comments

  1. I know it sounds simple, but we can’t assume these people understand basic concepts other than their precious tax & spend mantras. They live in a two-dimensional world. Their special ideas of social justice are automatic, non-thinking rhetoric when they don’t want to actually do something difficult, like manage a city with clever strategies or pro-economic ideas. But they don’t care. This is how these cities are run, even places like Seattle which appear successful. Their policies routinely chase out businesses, empty downtowns. Things trickle back in until the next good idea forces them out again. It sucks for the cities that can’t rake in enough taxes on magnificent properties. Philly is less fresh. It feels the losses because their cash cows are old. Their city council is going to hear about it from their precious community organizers when people are canned or places evaporate. All this is why I can’t stand living in these places anymore. I prefer places that are nicely stuck in the past, unable to get off the ground. I moved to El Paso last year & am a proud new Texan. The Dems here are too stupid to pick your pocket.

    Comment by Hanover — February 26, 2017 @ 8:17 pm - February 26, 2017

  2. They don’t get the simple concept : almost all corporate taxes are paid by the consumer of good and services.

    Comment by TnnsNe1 — February 26, 2017 @ 8:25 pm - February 26, 2017

  3. You can’t fix stupid

    Comment by Leslie — February 26, 2017 @ 8:32 pm - February 26, 2017

  4. Math is hard.

    Economics even harder.

    At least for nanny state liberals.

    Comment by Just Me — February 26, 2017 @ 9:26 pm - February 26, 2017

  5. can the soda companies pass their own tax to make up for lost revenues
    that business about the politicians wanting people to drink less soda as being the reason for the tax increase is a cover for the greedy politicians wanting more money.

    Comment by salg — February 26, 2017 @ 10:51 pm - February 26, 2017

  6. They don’t see cause and effect. Here in Seattle, the mayor is pushing for a massive property tax increase so that the city can use the money to address the lack of affordable housing. You can’t make this stuff up.

    Comment by Conservative Guy — February 26, 2017 @ 11:06 pm - February 26, 2017

  7. No, you have to understand that they refuse to take any responsibility for the consequences of their actions even when it does EXACTLY what they intended.

    They passed the tax with the intent to make soda more expensive so people would drink less of it.

    People DID drink less of it, exactly as they wanted. But what they didn’t want is for businesses to lay people off because they has less need for their labor force. They expected the business to simply keep the same number of workers who would be doing less when the business profits are down because there are fewer sales.

    To them, businesses are there for the sake of the employees.

    Comment by Craig Smith — February 27, 2017 @ 2:06 am - February 27, 2017

  8. 1. Sugary sodas and other beverages are harmful, that much is true.
    2. These drinks are subsidized by the government mostly in the form of SNAP benefits: food stamp recipients are their largest consumer base.
    3. Every single attempt to impose some kind of dietary restrictions for SNAP purchases has been rebuffed by the USDA for two reasons: 1) lobbying by the soft drink industry; 2) lobbying by welfare advocates who say that such rules are unfair to the poor.
    4. These sugary drinks have long-term health implications (obesity, diabetes, etc.) that increase the need for government subsidized health care for the poor who tend to suffer from these conditions disproportionately.

    So the producers of these beverages only suffer a very minor economic downturn, the health care industry sees an economic upturn, government experiences more need, and the grocery store sector takes it in the shorts. Of course, it never occurs to anyone that we should 1) stop subsidizing sugar production (subsidies making it cheap to produce, so sugar is found in everything); 2) end the SNAP program or at least severely limit what the poor can purchase with benefits.

    Comment by Ignatius — February 27, 2017 @ 6:18 am - February 27, 2017

  9. AS I PASS through my incarnations in every age and race,
    I make my proper prostrations to the Gods of the Market Place.
    Peering through reverent fingers I watch them flourish and fall,
    And the Gods of the Copybook Headings, I notice, outlast them all.

    We were living in trees when they met us. They showed us each in turn
    That Water would certainly wet us, as Fire would certainly burn:
    But we found them lacking in Uplift, Vision and Breadth of Mind,
    So we left them to teach the Gorillas while we followed the March of Mankind.

    We moved as the Spirit listed. They never altered their pace,
    Being neither cloud nor wind-borne like the Gods of the Market Place,
    But they always caught up with our progress, and presently word would come
    That a tribe had been wiped off its icefield, or the lights had gone out in Rome.

    With the Hopes that our World is built on they were utterly out of touch,
    They denied that the Moon was Stilton; they denied she was even Dutch;
    They denied that Wishes were Horses; they denied that a Pig had Wings;
    So we worshipped the Gods of the Market Who promised these beautiful things.

    When the Cambrian measures were forming, They promised perpetual peace.
    They swore, if we gave them our weapons, that the wars of the tribes would cease.
    But when we disarmed They sold us and delivered us bound to our foe,
    And the Gods of the Copybook Headings said: “Stick to the Devil you know.”

    On the first Feminian Sandstones we were promised the Fuller Life
    (Which started by loving our neighbour and ended by loving his wife)
    Till our women had no more children and the men lost reason and faith,
    And the Gods of the Copybook Headings said: “The Wages of Sin is Death.”

    In the Carboniferous Epoch we were promised abundance for all,
    By robbing selected Peter to pay for collective Paul;
    But, though we had plenty of money, there was nothing our money could buy,
    And the Gods of the Copybook Headings said: “If you don’t work you die.”

    Then the Gods of the Market tumbled, and their smooth-tongued wizards withdrew
    And the hearts of the meanest were humbled and began to believe it was true
    That All is not Gold that Glitters, and Two and Two make Four
    And the Gods of the Copybook Headings limped up to explain it once more.

    As it will be in the future, it was at the birth of Man
    There are only four things certain since Social Progress began.
    That the Dog returns to his Vomit and the Sow returns to her Mire,
    And the burnt Fool’s bandaged finger goes wabbling back to the Fire;

    And that after this is accomplished, and the brave new world begins
    When all men are paid for existing and no man must pay for his sins,
    As surely as Water will wet us, as surely as Fire will burn,
    The Gods of the Copybook Headings with terror and slaughter return!

    Comment by Rd42 — February 27, 2017 @ 6:53 am - February 27, 2017

  10. I would agree with most of what you say, Ignatius, except for the part about lobbying of the soft drink industry. I find it rather incredulous that SNAP buyers make up that much of their income that it would be worth their while to spend money on lobbying.

    Comment by Craig Smith — February 27, 2017 @ 7:40 am - February 27, 2017

  11. That, Craig, and the fact that if there was actually sugar in soft drinks it’d be healthier. No, it’s all high fructose corn syrup…because the protected sugar market has artificially increased the cost of sugar beyond that of corn syrup by a fair margin,

    Comment by aerinyes — February 27, 2017 @ 10:19 am - February 27, 2017

  12. Also, the Philly tax isn’t just high-calorie sodas, all flavored drinks, even diet, are subject to the tax.

    Comment by V the K — February 27, 2017 @ 10:39 am - February 27, 2017

  13. To be clear, SNAP recipients spend more on sugary drinks than any other demographic. And it’s ‘incredulous’ that the USDA is lobbied?

    Comment by Ignatius — February 27, 2017 @ 10:43 am - February 27, 2017

  14. Here’s one (dated) explanation of how much of this happened: http://obrag.org/?p=3292

    Comment by Ignatius — February 27, 2017 @ 10:49 am - February 27, 2017

  15. The Gods of the Copybook Headings keep trying; humans keep ignoring.

    Comment by KCRob — February 27, 2017 @ 12:22 pm - February 27, 2017

  16. It doesn’t just affect the soda sales. The real long-term impact will register at the grocer stores closer to the city-limits as they start to lose full-cart shoppers to the grocer stores just across the line in Bucks, Montgomery and Delaware counties. Some are right across the street from each-other in competing shopping centers. Going to the ‘Burbs vs. the local bodega will get-old fast, but the decision to turn left or right while on City Line Ave. or Cheltenham Avenue can become a lasting shopping-habit affecting the entire shopping cart.

    Many of those living in the downtown area and Boystown who have access to cars already do their grocer shopping in NJ across the Bridge. The same with those going-to or coming-back from the New Jersey shore. They’ll just include the soda along with their liquor-buying on the Jersey-side of the bridges.

    At these prices, the college students will just buy more beer…

    Comment by Ted B. (Charging Rhino) — February 27, 2017 @ 2:43 pm - February 27, 2017

  17. In Germany beer is cheaper than soda. A 2 liter bottle would have more tax on it than the cost of one outside the Philly border

    Comment by Steve — February 27, 2017 @ 4:48 pm - February 27, 2017

  18. […] The latest example of irrationality (which is a superset of both hysteria and hypocrisy) comes via V the K at […]

    Pingback by Hysteria or Hypocrisy? | A Plebe's Site — March 1, 2017 @ 7:57 am - March 1, 2017

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