Sunday, 13 August 2017

The Soda Tax Discussion

Weeks ago, I sat trying to grasp this Chicago soda tax thing.  It's a tax strictly on sodas...NOT beer or wine, or fruit-juice.  Being a former soda-drinker....I had some interest in this.

First, there's the regular sales tax at work....it doesn't go away.

So you pile up on a single can of soda....one cent for each ounce (12 ounces....12 cents) of special soda tax.  Normally, a 24-pack of Cokes would cost you in the range of $13.50.  Maybe at some military commissary....you might still be able to get them for $9.50.

If you do the math....the 24-pack will cost you in Chicago soda tax $2.88....on top of the sales tax.

Legal?  Some folks have pointed out that the state has a law that says you can't tax on top of a tax.  But so far, no one has challenged this part of the law.

What's likely to occur in this case?  If I lived in Chicago....I'd probably go out every six weeks, and go beyond the county-line, and buy six to eight 24-packs of soda.  Maybe I'd even go a hundred miles to find a real discount sale going on, and buy twenty-five 24-packs of soda and just store them in the garage.

This is silly, if you start to think about the tax, and the odds of people buying bulk to avoid the local tax.

Success rate of this soda tax?  I'd give it less than 10-percent chance of still being around in three years.

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