Posted in Commentary on May 12th, 2009
It wasn’t that long ago that Governor Paterson’s soda tax plan was axed… it was never popular and was considered by some to be a sacrificial lamb in the budget debate.
So, one has wonder why, Congress would consider a federal soda tax to pay for Obama’s universal/socialized healthcare plan.
A poll from earlier this year found that 70% of Americans 70% of Americans oppose a tax increase on soda. So, I am sure a federal soda tax isn’t going to pass easily… but, I am sure they find other ways to raise our taxes to pay for this ridiculous health care plan.
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Posted in New York State on Feb 4th, 2009
A reader informs The Bean of new report from Capital Hill Research Center Report that says “24 New York counties near a state border or Native American reservation will be hardest hit by job losses associated with the proposed 18 percent tax on soft drinks,” as is being proposed by Governor David Paterson.
The report says a major price differential resulting from the new tax will encourage consumers to travel across state lines or onto Native American reservations to purchase tax-free soft drinks.
“If the soda tax is implemented, it will produce a massive shift of business and wealth to neighboring states and Indian reservations,” said James H. Watson, director of the Capital Hill Research Center based in Albany.
The effect will be especially pronounced along the borders with Massachusetts and Vermont, which exempt soft drinks from taxation, and in the communities adjacent to the state’s three main Native American reservations, which do not charge state or local taxes.
The report notes that the price advantage of Native American retailers would increase from the current 29 percent to 47 percent if the new soda tax is implemented. (This is due to the combined effect of local and state taxes, plus bottle deposits, plus the new soda tax, none of which would be administered by reservation retailers.)
The report also says that in the Southern Tier of the state retailers stand lose even more sales to retailers in northern Pennsylvania. The estimated jobs that could be lost by Paterson’s soda tax is 6,100.
So, Governor Paterson, is it worth it?
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