As the number of cities and states across the country facing economic challenges continues to grow, some legislators are leaning on the false hope of a tax on beverages as a means to solve these issues.
However, whether these taxes are proposed in order to fill a budget gap or to pay for new programs, the fact remains that such taxes are unstable sources of income that end up hurting those that live and work in these communities.
The reality is that these taxes are passed onto consumers, often those that can least afford it. Look no further than the recent impact that Philadelphians are feeling in the first week the tax has been in effect. These increased prices could end up driving consumers to purchase beverages outside the city and therefore result in less revenue than the city anticipated.
Ultimately these taxes aren’t fair to the consumers who pay them and the people who are sold the false promise that these taxes could solve a city or state’s economic hardship.