Proposed D.C. Soda Tax Simply a city “Cash Grab”
Published in National Center for Public Policy Research, October 9th
Just seven days after Washington, D.C. raised the sales tax on sodas and other sugary drinks by two percent, legislation was introduced to repeal the tax. Unfortunately, it was not because the City Council was already having understandable second thoughts.
Not even close. The repeal is intended to make way for a new 1.5-cent per ounce excise tax on the same products. Councilmember Brianne K. Nadeau wants to tax distributors of sodas, sports drinks, iced coffee and other drinks so that they will pass on the cost to consumers through higher menu and shelf prices. Under this strategy, the sticker shock could lead to people choosing other beverages.
A two-liter bottle of regular cola could end up costing a dollar!
But the proposed tax – which is supposed to influence people to choose something other than the taxed products – is also supposed to fund childcare programs, health food giveaways and open space beautification.
