Soda Tax? No Free Lunch, Nor Cheap Soda

The WSJ reports that the Obama Administration is considering a tax on soda to assist in the funding of government sponsored health insurance.

It is looking as though there is no tax that these fellows oppose or would not consider using. I noted earlier today that the Administration has targeted securities dealers, life insurance companies and large estates as vehicles to raise revenues.

American history runs in cycles. The cycle which embraced tax cuts is DOA and a wide swath of the American economy is now fair game as a source of revenue raising.

I suppose they ran a focus group or two during the election cycle and figured that taxing Coca Cola would not fly during campaign season and better to drop that proposal into the hopper when you have a firm grasp on the reins and levers of power.

Comments

[FiaPoko:]

So is this the government equivalent of rifling through the couch cushions for change or taking back ones cans and bottles to get the deposit back?

What's next, the Treasury taking out a payday loan for a trillion or two?

May 12 07:14 AM

[mdmrjsds:]

John wrote:
...
It is looking as though there is no tax that these fellows oppose or would not consider using. ...

Actually, there seems to be one. They are not talking about ending the boondoggle that is the war on drugs. Over half the people in federal prison are there on drug charges, so that is a large cost that would go away. Now think of the taxes those people would pay if they were working. And the DEA is a huge cost. Finally, if drugs were legal and sold in some sort of regulated way, there would be a tax revenue stream similar to alcohol available. Compared to taxing coca-cola, this is a no brainer, and a huge revenue stream just waiting to happen.

It would do wonders for the political stability of Mexico and Colombia as well, and hit the Taliban in Afghanistan where it hurts (most of their funding is opium derived).

And it wouldn't really make drugs any more available than they already are.

May 12 10:27 AM

[sparkyman78610:]

Thats right! Legalize and tax it. Gambling and prostitution should be next. Kinda makes you wonder why we wasted billions of dollars and millions of lives on slavery. We should of kept it legal and taxed the plantations owners per head. Right?


On May 12 10:27 AM mdmrjsds wrote:

> John wrote:
> ...
> It is looking as though there is no tax that these fellows oppose
> or would not consider using. ...
>
> Actually, there seems to be one. They are not talking about ending
> the boondoggle that is the war on drugs. Over half the people in
> federal prison are there on drug charges, so that is a large cost
> that would go away. Now think of the taxes those people would pay
> if they were working. And the DEA is a huge cost. Finally, if drugs
> were legal and sold in some sort of regulated way, there would be
> a tax revenue stream similar to alcohol available. Compared to taxing
> coca-cola, this is a no brainer, and a huge revenue stream just waiting
> to happen.
>
> It would do wonders for the political stability of Mexico and Colombia
> as well, and hit the Taliban in Afghanistan where it hurts (most
> of their funding is opium derived).
>
> And it wouldn't really make drugs any more available than they already
> are.

May 12 03:45 PM

[ChewYourGrouse:]

This is truly excessive governmental maternalism, and talk about regressive! The fizzy stuff has been giving up market share to non-gasieuse for some time anyhow.

I agree with the previous poster, and say we should legalize marijuana and tax it appropriately. Coke and heroin would be going a bit far.

May 12 03:48 PM

[Drew Horn:]

Sparekyman, you protest without thinking it through. Ending slavery, over time, allowed former slaves to do be free to make choices. Ending the useless "war on drugs" would do the same. For 50 years or more we have been trying to use jails to solve the drug problem and it is worse than ever. Its time to stop wasting resources on an attempt to make those who don't want to live a decent life change their habits. I would be better to isolate them so they can harm the rest of us.

On May 12 03:45 PM sparkyman78610 wrote:

> Thats right! Legalize and tax it. Gambling and prostitution should
> be next. Kinda makes you wonder why we wasted billions of dollars
> and millions of lives on slavery. We should of kept it legal and
> taxed the plantations owners per head. Right?

May 12 04:51 PM

[Drew Horn:]

The last sentence should have been: It would be better to isolate them so they can't harm the rest of us.


On May 12 04:51 PM Drew Horn wrote:

>
> Sparekyman, you protest without thinking it through. Ending slavery,
> over time, allowed former slaves to do be free to make choices. Ending
> the useless "war on drugs" would do the same. For 50 years or more
> we have been trying to use jails to solve the drug problem and it
> is worse than ever. Its time to stop wasting resources on an attempt
> to make those who don't want to live a decent life change their habits.
> I would be better to isolate them so they can harm the rest of us.
>
>
> On May 12 03:45 PM sparkyman78610 wrote:

May 12 04:54 PM

[Tony Petroski:]

Mr. Jansen has hit the mark: The administration admits another appetite affecting allocation of wealth, the satisfactions of soaking the soda-drinker.
-
Nice to see you branching out Mr. Bond Expert.

May 12 09:56 PM

[Isaiah R.:]

A new proposed tax is in process, and will have a far more negative than positive impact on the economy—a sugar tax. Sugar tax would be placed on food and beverages, which contains high sugar, soda, Gatorade and things of the same nature might include. Several stated have tried passing the said tax but it hasn’t been very popular, as the as the national habit for sugary drinks is well documented and attributed as playing a part in the national obesity rates. The idea of payday loans to feed the Pepsi habit isn't something people are thrilled about, and earlier attempts to pass similar measures haven't met with success. Nobody wants to need debt relief for a can of Coke thanks to a sugar tax.

May 19 05:12 AM