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Daily Archives: August 13, 2017

Governmental Dumbness . . .

Kinda par for the course, right?




In a fantastic display of business acumen, the United States Post Office wants to raise stamp prices again. They’re losing too much money because less and less people mail letters every year. Well, that’ll encourage ‘em to mail more letters.

It’s called a death spiral, guys.

In other stupidity, the city of Philadelphia passed a ‘soda tax’ that took effect this past January. But unlike other cities that tax ‘sugary’ drinks, Philly is taxing everything non-alcoholic, fruit juice, diet drinks, anything with any sort of sweetener in it, artificial or otherwise at 1.5 cents per ounce.

In many cases it more than doubles the price of the drink,

phillybeveragetaxover100pct0817

and makes ‘soda’s more expensive than beer.




The mayor in pushing this bill though assured the public and the city council that the beverage distributors would absorb the cost of the tax and the public wouldn’t see any increase.

Unfortunately no one ask the beverage distributors about this. But even without eating the tax, they’re hurting anyway, with some reporting sales down nearly 50 percent, and both Coca Cola and PepsiCo having to lay people off.

And PepsiCo is no longer selling 12 pks and 2 liter bottle because they’re become so pricey no one is buying them anymore.

And now convenience stores and family grocery stores located near the city limits are starting to go under. If you going outside the city for your ‘soda’, why come back in the city for your gas, cigarettes, beer, etc.?

Oh, and the sales of alcoholic beverages have skyrocketed.

Who could have seen that coming?

Of course, not to be outdone, Cook County, IL (basically Chicago) had to get in on this largess of tax money. But they decided to cut the public a break and only tax ‘soda’ at 1 cent per ounce additional.

But then they already have a 3 percent soft drink sales tax as well as a 10.25 percent general sales tax. And it’s all cumulative. So you’re paying a tax on a tax on a tax.

And because many small business’ computer systems can’t handle all this taxing going on, people find that they’re paying the new tax on bottled water as well.

And now in one of those real ‘gotcha’ moments, the U.S Department of Agriculture is threatening to withhold $87 million in food stamp payments because of the new tax. Apparent food stamp recipients can not be charged this tax, since their purchases are suppose to be exempt from state and local sales taxes.

The city tried to have merchants charge the tax and then immediately refund the tax, but Ag Department said NO.



So the whole thing may go down in flames anyway.



Thought for the Day:
 

“A committee is a cul-de-sac down which ideas are lured and then quietly strangled.” — Sir Barnett Cocks


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