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

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

  1. 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.

    But alas, in fairy tale lib-land, only deplorables drink soda. Bad. Elite drink coffee. Good.

  2. 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??

  3. 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!

  4. 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 with this form of dementia. They so hate the successful that they want to “punish” them with taxes. They refuse to believe that they are paying for them themselves.

  5. “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% in taxes after all fees, sales tax, hidden taxes, and surcharges on everything short of air are factored in. If the new breed of communists in Congress get their way, real taxes on the super rich that mouthpiece Sandy’s proposing will have more loopholes than Swiss cheese while the poor see their taxes go unnoticed through the roof. What disgusting, evil frauds the Left are who’ll tax the crap out of working people so their Wall Street bankrollers keep it all.

  6. 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…..”


    • 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 Jones’s book, The Jewish Revolutionary Spirit, goes into great detail about this historical land-grab swindle, relying mainly on Jewish sources themselves, documenting Jewish predatory credit-based confiscation of huge swaths of Russian farmland a century ago. Resnick’s father was a bar owner from Russia according to the article you posted, which ties in with Jewish control over the distillation and sale of alcohol in East Europe a century ago. Dostoevsky also wrote in his Writer’s Diary about the Jews giving unlimited vodka to the peasants right before harvest to entrap them into confiscatory debt obligations as a state-sponsored means of stealing real assets. Recently, after the US State Department’s manufactured turmoil and bloodbath horrors in the Ukraine, it was a Chabad front man rushing in there and taking vast tracts of the simple people’s land following manufactured withdrawal of credit and financial uncertainty.

  7. 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.

  8. 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.

  9. 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 taxes are increased (within the elasticity of demand).
    In other words, it is a tax like this that interferes with the price mechanism of a consumer product. But I get it, all right: Here in New York City, then-Mayor Bloomberg socked every property owner with a 25% tax increase, which caused everyone’s rents to skyrocket and pushed many long-term residents out.

    We do not have a republic when it comes to this issue; We have a democracy in this issue. This is because representative government, when it comes to sin or nuisance taxes is dead, and the democracy is two wolves and a sheep deciding what’s for dinner! The power to tax is the power to destroy, and the government and its employees really function as PARASITES off of the public. (I just thank God I don’t live in the EU!)


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