The city of Seattle has enacted a new tax on sugary drinks which almost doubles the cost of some products. Local business leaders are not happy and complain that people are spending their money elsewhere. Who could have guessed such a thing would happen?
The Blaze reports:
The effects of Seattle’s soda tax are finally being realized — and business leaders are furious
The absurdity of Seattle’s new sugary drink tax was exposed earlier this month when adjusted Costco price labels made headlines nationwide.
Thanks to the 1.75 cents per ounce tax, a 36-pack of soda at a Seattle Costco rose in price by 75 percent, while a 35-pack of gatorade raised by similar levels. While city leaders say the tax will benefit the city, business leaders and representatives say the tax will do nothing but hurt Seattle businesses, their employees and, in the long-term, the city itself.
Jagajit Singh, who runs a pizzeria on the outskirts of Seattle, told KING-TV the tax puts her business at a severe disadvantage to businesses just down the street from her that are outside the city limits. Those businesses aren’t subject to the “soda tax.”
“Many of my customers are from outside the area and will simply choose to not come to my store,” Singh explained. “Stores just down the street are advertising for people to buy drinks there because they don’t have Seattle soda tax. Once our customers leave they may not come back.”
Shouldn’t the people who understand business have a say in such policies? This will ultimately hurt the city’s economy.