Stupid Choices; Predictable Results; Shifting Blame

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 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.

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25 Responses to Stupid Choices; Predictable Results; Shifting Blame

  1. R.D. Walker says:

    The tax, the city and the mayor are so amazingly stupid, I don’t even know where to start.

    • notamobster says:

      Tell me about it.

      These are real small businesses, not unlike the ones we run, that are being driven into the poor house by a tyrannical local government.

      I remember a 3% tax on tea causing some sort of kerfuffle, back in the day, if memory serves.

      • Ben says:

        That 3% was universal and could not be avoided. The smart ones can just move out of that shit hole.

        I have advocated paying New Jersey to take Philthy from us for years.

  2. R.D. Walker says:

    I just looked it up. The nonalcoholic beverages industry net pre-tax margin was between 7% to 13% in 2016. The mayor and city thought that the industry could just absorb a 51% tax increase reducing margins by half without passing the tax on to consumers? What the actual fuck?

    • notamobster says:

      Well, you see, it’s because greedy fatcats take bonuses, that’s why their margins are so low. Fatcat overhead.

      Like other leftist cities, they conflate Coca-Cola with Bob’s soda distributor, or like the $15 min wage, they hold McDonald’s up as the greedy enterprise, not realizing that they are hurting the mom & pop local franchise owners and the hundreds of people they employ.

      Cut throat margins occur across beverages, food, and prepared items. Distributors do so well because they sell in quantity. If those qty’s drop off, there goes Uncle Joe’s job driving the Coke truck.

      • R.D. Walker says:

        So what actually happens to net margin? One of two things:

        1) It is used to expand operations of the enterprise, or…

        2) It is distributed to the people who invested in the enterprise, took risk, delayed gratification, created jobs and provided a product that people enjoy.

        Which part do these crypto-communist fucknuts hate?

  3. C. L. says:

    Maybe they need to create a form letter for things like this.

    de Blasio – “I didn’t think it was possible for Wells Fargo to be any greedier, . . .”

    Kennedy – “I didn’t think it was possible for the soda industry to be any greedier, . . .”

    Conyers – “I didn’t think it was possible for white people to be any greedier, . . .”

    DNC – “I didn’t think it was possible for Republicans to be any greedier, . . .”

    If not, they should get right on that. It will save a lot of time to have a pre-approved template. I used to make those by the dozens.

    note: If I write in my word processing program and paste here the underlines do not carry over.

  4. Ben says:

    Bold does not work for me, either.

    You need to use the html syntax not copy paste sadly.

  5. notamobster says:

    How did this turn into HTML:101? 🙂

    • C. L. says:

      Sorry, it’s because I just discovered I am HTML illiterate. I’ve always relied on my word processing program to do all of that and more. That graphic you posted is now bookmarked.

  6. rj says:

    I’ll get it back on track, pols who think they can tax individual luxury items and the cost of said tax will not be passed to the consumer, resulting in lower consumption thus not increasing tax revenue are dumber than a box of hammers.

  7. pigpen51 says:

    I try to tell the liberals that I have the rare discussion with that corporations do not pay taxes. Period. Do they really think that if they raise the corporate tax rate on Ford Motor Co., that Ford is not going to simply raise the cost of a new car? I also try to explain that if they took all the money from the top 100 richest people in our country, every cent, it still would not be enough to pay our budget for the year. They don’t get it. I got my taxes done today. My wife and I are getting more money back from the Federal and State than we payed into either one. Yes, we were on the lower end of the income spectrum last year, but the liberals don’t understand that poor people simply do not pay any taxes. I have come to the conclusion, that liberals are not in denial, they are just stupid.

  8. mr_bill says:

    “…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…”

    Wait a second. If a business is “greedy” for passing on a cost of business to the consumer, what does that say about the people who created this new tax for people to pay?

    If a business is “greedy” for cutting back jobs it cannot afford to staff because government has impaired demand for that business’s goods, what does that say about the people who created this policy?