PHILLY SODA TAX WILL BE A TOTAL FAILURE

Another liberal scam to bilk people out of money to fund corrupt politicians and their union cronies will be a complete and utter failure. Liberals don’t understand economics, unintended consequences, or the intelligence of business people and citizens. Mayor Kenney and his moronic minions think they can multiply 1.5 cents times the amount of soda currently consumed to raise $91 million per year “for the children”. They are too stupid to realize people and businesses will always adjust their behavior to reduce their pain.

The article below addresses only the tip of the iceberg. Smart businessmen who understand economics and tax law better than liberal Democrat idiots like Kenney, will find a way to not pay the tax. The gentleman interviewed in the article says companies will us transshipping to not pay the tax. They already avoid a bottle tax in NY. So, the big grocery stores, Wal-Marts, Targets and wholesale clubs will use this method to not pay the tax. Only the small mom and pop stores in the poor neighborhoods will end up paying. So only the poor folks will see the 50% to 60% increase in costs.

Anyone who lives within 5 or so miles of the Philadelphia border will do their grocery shopping in Montgomery, Delaware, or Bucks County and avoid paying the higher prices. This will result in more Philadelphia based retailers going out of business and laying people off. Kenney is hiring 15 new government drones to enforce his soda tax. They are going to be sitting around with their thumbs up their asses wondering where the $91 million went. At $120,000 per drone, the taxpayers are getting screwed again.

Kenney will be lucky to generate $40 million from this illegal sales tax, if it doesn’t get overturned in court. The truth is that this money is going into the general fund. There is no special fund to make sure it gets spent on the kids. Nothing but politician lies. Kids won’t be healthier. Kids won’t be smarter. But politician hacks and their union cronies will be richer. Liberals are dumber than a sack of hammers but they are more dangerous than a Disney alligator for two year olds.

Beverage tax bill signed amid doubts, opposition

Kenney signed the bill at City Hall shortly before noon. Council members approved the 1.5-cent-per-ounce tax last week by a vote of 13-4.

The law will go into effect in January. The revenue is mostly intended for city programs, including pre-K and rec centers.

The city intends to hire extra tax collectors to enforce the law. In all, there will be 15 staffers at a cost of $1.8 million.

But we talked to one soda business veteran who is skeptical the new tax is going to deliver anywhere near the $91 million the city is expecting.

That’s because the tax will be levied not on retailers, but the soda distributors. David Day of Day’s Beverages in Yeadon, Pa. predicts distributors will use transshipping to get around the tax.

He says “There will be soda coming in from Baltimore, coming in from North Carolina, from New York, into these large cash-and-carries in Philly, and the city will never get that tax money.”

Day says transshipping is already used to get around bottle bill costs in New York.

“So much soda being shipped in northern New York, right off the Hudson and it goes right over the bridge to New York and avoids the tax,” Day said.

Day says his firm will pay all the taxes Philadelphia wants, but suspects there will be others who will skirt the law and the tax.

Everyone, including the mayor, is expecting a legal challenge. A coalition opposing the tax announced Monday it has retained the law firm of Kline and Specter to pursue legal action.