A One-Cent Soda Tax Gets Expensive in California

The is a tax proposed in California that would increase the price of all sugary beverages by 1 cent per ounce. This would increase the price of a two-liter bottle by 67 cents. Many of the beverage companies are spending lots of money to dissuade voters from enacting this. Many people think of this as a sin tax trying to lower the consumption of sugary beverages. I find it interesting that the beverage companies would spend so much when ultimately they will not bear the majority of the cost of the tax. This also is inefficient for the market as we have seen in the past as it creates DWL. Then again, it creates equity and allows the government to earn more revenue and thus can do more projects to improve public goods. There is no good answer... once again

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