Will they ever learn? Cost increases ALWAYS get passed on to the consumer. Always & everywhere. This is immutable in a capitalist society. In a socialist environment, no one needs to worry about where the money goes, because eventually it will all be gone anyway.
When Philadelphia became the first US city to pass a soda tax last summer, city officials were eagerly looking forward to the surplus-tax funded windfall to plug gaping budget deficits (and, since this is Philadelphia, the occasional embezzlement scheme). Then, one month ago, after the tax went into effect on January 1st we showed the tax applied in practice: a receipt for a 10 pack of flavored water carried a 51% beverage tax. And since PA has a sales tax of 6% and Philly already charges another 2%, the total sales tax was 8%. In other words, a purchase which until last year came to $6.47 had overnight become $9.75.
According to Philly.com reports, two months into the city’s sweetened-beverage tax, supermarkets and distributors are reporting a 30% to 50% drop in beverage sales and – adding insult to injury – are now planning for layoffs […] Bob Brockway, chief operating officer of Canada Dry Delaware Valley, which distributes about 20 percent of the city’s soft drinks, said sales were down 45 percent in Philadelphia. The company will lay off 20 percent of its workforce the first week in March […] “People didn’t change what they drink,” Brown said. “They changed where they’re buying it.” […] since January, Brown said, he has had to cut 6,000 employee hours, he said. He said he suspects he will lose about 300 people, which amounts to one-fifth of his total workforce voluntarily and through layoffs in coming months.
So, rather than accepting that they’d made a stupid policy error, what did Philadelphia’s tyrannical tax-thief mayor have to say of the matter?
Mayor Kenney harshly rebuked reports of coming layoffs late Tuesday night.
“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.”
The demagoguery is thick with this one. Notice how he lumps all marginally-interested parties together as some nefarious, monolithic organization, bent on the destruction of the working man? This is populism. This pure leftism, chapter & verse. Steve Bannon does this same thing, but with the intelligence community and media. Donald Trump does it, too. This shit makes me sick, whether it happens on the left or the right.