Seattle recently became the latest major city to enact a sweetened beverage tax. In response to the new levy, some retailers have calculated how much of the price is due to the tax, and customers are reeling from sticker shock. One local reporter found that the tax added $10.34 to a case of Gatorade, bringing the final price to more than $26.00.
Other sweetened beverage taxes were beset by problems in 2017. In Philadelphia, tax revenues have fallen short of projections. Cook County has already voted to repeal its tax due to myriad problems with the design, implementation, and deep unpopularity.
Seattle's tax differs in some particulars, but it has been justified on various grounds at different times, which lends a degree of incoherence to how it was formulated and implemented. The confusion regarding the tax's intended purpose stems from an unwillingness to acknowledge any trade-offs or adverse consequences that might be associated with it.
