August 10, 2017

From Coke To Coors: Philly Soda Tax Leading To Alcoholism As Beer Now Cheaper Than Soda

Perhaps The Burning Platform summarized the idiocy of Philadelphia's soda tax better than anyone to date:

In a shocking development, the Philadelphia soda tax is a big fucking fail. Who could have predicted that. Democrat government drones and their brain dead minions are so desperate for money to fund their gold plated union pensions and bloated salaries, they lie, cheat and tax the poor into oblivion. Result: lost jobs, further impoverished poor people, no help for children, more closed businesses, and a further hole in the city budget. But at least the city union workers can keep their gold plated pensions – for now. Maff is hard for liberals, but it always wins in the end.

But, as The Washington Free Beacon points out, the unfortunate side effects of Philly's disastrous soda tax may not be limited just to the economic consequences enumerated above.  As a study by the Tax Foundation recently found, there are social consequences as well with people now choosing to substitute beer for soda in light of the fact that, well, beer is just cheaper.

Philadelphia's tax on sugary drinks has made soda more expensive than beer in the city.

The Tax Foundation released a new study on the excise tax last week, finding that the 1.5-cent per ounce tax has fallen short of revenue projections, cost jobs, and has forced some Philadelphians to drive outside the city to buy groceries.

The study finds that the tax is 24 times higher than the Pennsylvania tax rate on beer.

"Purchases of beer are also now less expensive than nonalcoholic beverages subject to the tax in the city," according to the study, written by Courtney Shupert and Scott Drenkard. "Empirical evidence from a 2012 journal article suggests that soda taxes can push consumers to alcohol, meaning it is likely the case that consumers are switching to alcoholic beverages as a result of the tax. The paper, aptly titled From Coke to Coors, further shows that switching from soda to beer increases total caloric intake, even as soda taxes are generally aimed at caloric reduction."

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