Black market soda.
Couple articles with more information:
http://www.zerohedge.com/news/2017-02-22/philadelphia-soda-tax-leads-30-50-plunge-sales-mass-layoffshttp://www.zerohedge.com/news/2017-02-22/philadelphia-soda-tax-leads-30-50-plunge-sales-mass-layoffsReading between the lines, it's already happening. A number of distributors allow "walk in business" where they'll sell you soda with no questions asked but "how much do you want?".
“We’re one block out of Philadelphia, in Delaware County, and you can’t imagine how many stores are coming to our warehouse and picking up our soda. I don’t care what they do -- they're coming here as a cash-and-carry. Our doors are open to everyone,” he said. “We don’t police where it’s going.”
Their walk in business has exploded, and that includes syrup. It might not be worth it to drive out of the city to save $10, but how about nearly $60 per box of syrup, or a discount ranging from 33-50%?
And sales at places that sell soda are down
period, and sales outside the city are up, and again, reading between the lines, not just for soda.
IE driving outside the city to save $$$ on soda? Might as well pick up the rest of your groceries while there.
I love this:
Rather than allowing for the possibility that the increase in price might be related to the 1.5-cents-per-ounce tax, Kenney instead said beverage companies are “gouging” customers in an effort to frustrate consumers about the tax.
Really? Take Any Pincus(in the first article).
5 gallon box of syrup, makes 'about' 2,840 ounces of soda. Sale price: $60-90. Profit: $3-18 gross, per box. Tax: $57.60
Even with 2 liters, the tax is effectively 100%.
Does Jim Kenney expect soda makers to
give away their product in order to pay the tax?
He may find himself displaced next term by a Mayor who runs on a single promise: "Elect me and I'll get rid of the soda tax". Really, he deserves to be gone for either being that fiscally stupid or that smarmy of an ahole to argue that beverage companies can or should absorb a 100% tax. Did he price it for the smallest sodas with the highest margins?
“Initially people are upset and drive over the city line, but then they do the math and realize the cost of gas or the pure inconvenience doesn’t make it worth it,” Dunn said.
Well, here's the deal: If it was just $5-10, you'd probably be right. But if they can save $50 by buying in bulk on the occasional trip out, PLUS the 2% philly proper tax on even more groceries, then the number who are going to drive is going to go up.
