Tuesday, 16 January 2018

The Sugar Tax

A case of regular Gatorade costs around $15.99....at least in 99-percent of the country.  If you live in Seattle....there's a surcharge for all stores within the city-limits....of roughly $10.50 on top of that case. 

So the question, would you easily walk into a Seattle city grocery, and pay $26.33 on the case?  Out of a hundred people....my best guess is that 95-percent of them will say no, and then drive a mile outside of the city limits, and buy bulk....enough for an entire month and avoid the $10.50 per case surcharge.

No one in the city council says much over the implications, but you have to figure that their city tax collection folks are looking over the situation and in six months....note they are missing 5-percent of their typical normal income.  In fact, if you were already at the bulk-grocery store....why not shop and buy most everything you need?  So you could be talking about 25-percent of the anticipated tax collection missing.

Don't get me wrong, I do believe this sugar gimmick of sodas and drinks is harming folks.  In a 12-ounce solution, there probably ought to be a maximum limit of sugar.  But all this fee-based business just makes folks go drive an extra ten-minutes and buy bulk....avoiding your fee. 

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