I’m shocked! Study finds that nearly 100 percent of Seattle’s soda tax is passed on to consumers

The Seattle Times reports: Nearly 100 percent of Seattle’s new tax on the distribution of sweetened beverages has been passed on to consumers through higher in-store prices, a new report estimates.

But some taxed beverages have increased in price more than others and some stores have increased their prices more than others, according to the report by University of Washington researchers that City Council members are set to discuss Wednesday.

Sodas have increased in price more than sugar-sweetened juices and bottled coffee drinks, and smaller stores have increased their prices more than supermarkets, the report indicates.

Additionally, some smaller stores have increased their prices even for beverages not subject to the tax, such as diet sodas.

We don’t know why, but they did see something similar in Berkeley,” the California city that adopted a tax before Seattle, said research-team leader Jesse Jones-Smith, an associate professor of health services and epidemiology.

Seattle’s tax of 1.75 cents per fluid ounce, which took effect in January 2018, is charged to distributors of sugar-sweetened beverages. But the distributors can pass the tax on to stores and the stores can pass the tax on to consumers.

When the City Council approved the tax in 2017, many proponents said the goal was to decrease consumption of unhealthful beverages by driving up prices, while others supported the policy because they said it would raise money for healthful-eating and education programs.

Foes said the tax would disproportionately hurt people with low incomes. Some store owners and consumers opposed the measure, along with unionized beverage-industry workers.

The city collected nearly $17 million in the first nine months of the tax, surpassing its initial expectations, and officials now are counting on the money to keep rolling in, with substantial annual declines no longer anticipated.

Read the whole story here.

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Steven BroilesJackie PuppetYouKnowWhoFlandersDan Recent comment authors
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Lou Minati
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Lou Minati

If soda is going to be taxed, why not coffee? Used to be you ordered coffee black or with cream. Regular or decaf. Easy-peasy. Now coffee comes in unending designs and variations. You need a degree in Italian or French just to place an order. Then when it comes, most people load it up with sugar. Why aren’t we taxing sugar packets? Or even better, sugar substitutes? That stuff will kill you. Let’s get a head start on subsidizing your future medical bills. Better yet, why not tax all caffeine? And from there, taxing water is an easy mental leap.… Read more »

silhouette
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silhouette

If the dems really did care about our health why don’t they eliminate the possibility of being murdered, raped, assaulted or contracting of diseases that we face from the illegals??

Alma
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Alma

What else is new? Not surprised at all, all this bs got started with one-term-in-office Ocasio-Cortez, wait and see her try out for Dancing with the Stars. What a bimbette!

Lophatt
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Lophatt

In my state there is a “Business and Occupational (B&O) tax and the language is such that it implies that the subject must not pass the cost along. In negotiations with government people after I worked for private industry I got into many arguments over this. To believe that an “owner” is actually going to assume a cost out of his own profit is ludicrous. Whether they identify it as reimbursable or not, they are most certainly NOT going to pay it out of their personal earnings. This shows the utter idiocy and lack of reality-based thinking that goes along… Read more »

Dan
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Dan

“Foes said the tax would disproportionately hurt people with low incomes.” No kidding. The idea Seattle gives a crap about poor people’s health is a sick and disgusting joke. The idea is to incrementally force poor people off valuable real estate in the name of helping them. Michael Jones wrote a massive book, Slaughter of Cities, about such Progressive humanitarianism’s real purpose. According to a recent article in Business Insider, most Americans, regardless of their nominal federal tax bracket, pay a real rate of tax on their earnings of just over 50%, including our working-poor debt slaves, who pay 50%… Read more »

Flanders
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Flanders

On a similar note, Dan, how many farmers do you know who have privilege?

“Stewart and Martha Resnick are the biggest farmers in the United States Resnick is the son of an Ukranian Jewish bartender He is a lawyer

Stewart ’s never driven a tractor or opened an irrigation valve. He’s never put a dusty boot on the neck of a shovel and dug down into the soil. He wouldn’t know one of his Valencia orange groves from one of his Washington navel orange groves.

Now, all that farming requires a ton of water…..”

https://wideawakegentile.wordpress.com/2019/01/08/the-resnicks-pistachios-iran-sanctions-trump/

Dan
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Dan

Right, and the loathsome Resnicks are just the tip of the iceberg. Interesting, how whenever there’s a manufactured withdrawal of farm credit timed to coincide with drought or price pressures leading to bankruptcies, seemingly from nowhere come the seeming nobody Resnicks of this world with the fronted credit to buy up those farms for chump change—and in the ensuing systemic swindle be deeded water rights to prevent future competition. There’s another article I can’t locate right now detailing the Resnicks’ East European conspirators in the San Francisco area as well. Do you have it? Readers might be interested. Dr Michael… Read more »

YouKnowWho
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YouKnowWho

All politicians know that ALL taxes are paid by the PEOPLE. Companies simply pass the cost on to their customers. 50% really? I was thinking 70% or more. There are literally hundreds of taxes. Federal, State and Local. Each takes a little pinch, a little at a time so we won’t notice. Well, I noticed.

Jackie Puppet
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Jackie Puppet

C(r)ook County (IL) had a 1 cent/ounce a couple of years ago, and it lasted only a few months before it was repealed. I don’t buy too many sweetened drinks to begin with, but when I did, it was in another county.

Steven Broiles
Member

This is the kind of taxation I am absolutely against: Think of this as a sales tax—which it is—and you can see it disproportionately affects poor and working class people, which makes it a regressive tax. Furthermore, as a libertarian, I am against government meddling in our own lives; People ought to be able to consume anything they want as long as they can pay for it. But it is this leftist progressive Puritanism that especially galls me: Despite the money collected, not one obese person will lose weight due to this tax—the exact opposite thing that occurs when cigarette… Read more »