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Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Philadelphia Soda Tax Forces Local University To Hike Student Costs By $400,000
Posted by:
Zerohedge
()
Date: March 16, 2017 09:26PM
Students at Temple University in Philadelphia, or perhaps their parents, are getting a great lesson today on the real life economic consequences of liberal political policies run amok. Courtesy of Philly's new 1.5 cent per ounce 'soda tax', Temple has been forced to hike it's 2017-2018 boarding costs by $400,000, or roughly 4.8%. Per Philly.com, Temple's CFO said they will roll back the planned $400,000 meal plan hike if the soda tax is repealed.
Board rates will rise an additional 4.8 percent for 2017-18 solely because of the 1.5-cent-per-ounce sweetened-beverage tax, which went into effect this year, the university said. The tax was enacted to help fund parks, recreation centers, and early childhood education. Heated debate over it continues, with PepsiCo having announced planned layoffs and retailers reporting steep losses.
The total impact of the new tax is estimated to be $400,000 per semester, said Ken Kaiser, Temple's chief financial officer. The university will roll back the board increase if the tax is repealed, he said.
"This is another example of the damaging impact this tax is having on Philadelphia families," said Anthony Campisi, a spokesman for Ax the Philly Bev Tax Coalition, made up of a number of Philadelphia businesses and residents, many of them involved in the soda industry. "It’s ironic that a tax the mayor sold on the basis of expanding educational access is now going to be making higher ed less affordable for students."
Of course, Philadelphia's Mayor, who has come under fairly constant attack for the controversial tax, said that Temple is simply using his legislation as a scapegoat to "pay for their ever-growing administrative salaries and new, expensive buildings and amenities."
"The beverage tax is becoming a popular scapegoat for unpopular decisions," said spokeswoman Lauren Hitt. "Universities across the country have been raising meal-plan fees because families are increasingly chafing at tuition increases, and universities still want to pay for their ever-growing administrative salaries and new, expensive buildings and amenities."
"Temple's own administration staff has grown by 40 percent in recent years; they are planning to build a multimillion-dollar stadium; their new 24-story dorm includes flat screen TVs; and, sure enough, they have a history of raising their meal-plan fees to cover those costs - by 2.5 percent in 2015 and 4.3 percent in 2014."
As we pointed out a couple of weeks ago, when Philadelphia became the first US city to pass a soda tax last summer, city officials were eagerly looking forward to the surplus-tax funded windfall to plug gaping budget deficits (and, since this is Philadelphia, the occasional embezzlement scheme). Then, after the tax went into effect on January 1st we showed the tax applied in practice: a receipt for a 10 pack of flavored water carried a 51% beverage tax. And since PA has a sales tax of 6% and Philly already charges another 2%, the total sales tax was 8%. In other words, a purchase which until last year came to $6.47 had overnight become $9.75.
Then came the layoffs as soda sales slumped as much as 40% forcing Pepsi to lay off 80 to 100 workers at three distribution plants that serve Philly. And since Pepsi only employed 423 people in the city, it meant that as much as 20% of its employees were suddenly out of a job due to a disastrous ordnance that was meant to provide additional municipal funding and instead will now lead to an increase in unemployment, coupled with a general decline in consumption, not to mention tax revenues for the city of Philadelphia.
A spokesman for Pepsi said "The layoffs come in response to the beverage tax, which has cut sales by 40 percent in the city...Unfortunately, after careful consideration of the economic realities created by the recently enacted beverage tax, we have been forced to give notice that we intend to eliminate 80 to 100 positions, including frontline and supervisory roles."
But not to worry, we're sure Philly students can just take out more student loans to cover these increased costs...we certainly wouldn't want them to have to divert any portion of their student loans that they've already set aside for Cancun.
http://www.zerohedge.com/news/2017-03-16/philly-university-hikes-boarding-costs-400000-cover-soda-tax
.
Board rates will rise an additional 4.8 percent for 2017-18 solely because of the 1.5-cent-per-ounce sweetened-beverage tax, which went into effect this year, the university said. The tax was enacted to help fund parks, recreation centers, and early childhood education. Heated debate over it continues, with PepsiCo having announced planned layoffs and retailers reporting steep losses.
The total impact of the new tax is estimated to be $400,000 per semester, said Ken Kaiser, Temple's chief financial officer. The university will roll back the board increase if the tax is repealed, he said.
"This is another example of the damaging impact this tax is having on Philadelphia families," said Anthony Campisi, a spokesman for Ax the Philly Bev Tax Coalition, made up of a number of Philadelphia businesses and residents, many of them involved in the soda industry. "It’s ironic that a tax the mayor sold on the basis of expanding educational access is now going to be making higher ed less affordable for students."
Of course, Philadelphia's Mayor, who has come under fairly constant attack for the controversial tax, said that Temple is simply using his legislation as a scapegoat to "pay for their ever-growing administrative salaries and new, expensive buildings and amenities."
"The beverage tax is becoming a popular scapegoat for unpopular decisions," said spokeswoman Lauren Hitt. "Universities across the country have been raising meal-plan fees because families are increasingly chafing at tuition increases, and universities still want to pay for their ever-growing administrative salaries and new, expensive buildings and amenities."
"Temple's own administration staff has grown by 40 percent in recent years; they are planning to build a multimillion-dollar stadium; their new 24-story dorm includes flat screen TVs; and, sure enough, they have a history of raising their meal-plan fees to cover those costs - by 2.5 percent in 2015 and 4.3 percent in 2014."
As we pointed out a couple of weeks ago, when Philadelphia became the first US city to pass a soda tax last summer, city officials were eagerly looking forward to the surplus-tax funded windfall to plug gaping budget deficits (and, since this is Philadelphia, the occasional embezzlement scheme). Then, after the tax went into effect on January 1st we showed the tax applied in practice: a receipt for a 10 pack of flavored water carried a 51% beverage tax. And since PA has a sales tax of 6% and Philly already charges another 2%, the total sales tax was 8%. In other words, a purchase which until last year came to $6.47 had overnight become $9.75.
Then came the layoffs as soda sales slumped as much as 40% forcing Pepsi to lay off 80 to 100 workers at three distribution plants that serve Philly. And since Pepsi only employed 423 people in the city, it meant that as much as 20% of its employees were suddenly out of a job due to a disastrous ordnance that was meant to provide additional municipal funding and instead will now lead to an increase in unemployment, coupled with a general decline in consumption, not to mention tax revenues for the city of Philadelphia.
A spokesman for Pepsi said "The layoffs come in response to the beverage tax, which has cut sales by 40 percent in the city...Unfortunately, after careful consideration of the economic realities created by the recently enacted beverage tax, we have been forced to give notice that we intend to eliminate 80 to 100 positions, including frontline and supervisory roles."
But not to worry, we're sure Philly students can just take out more student loans to cover these increased costs...we certainly wouldn't want them to have to divert any portion of their student loans that they've already set aside for Cancun.
http://www.zerohedge.com/news/2017-03-16/philly-university-hikes-boarding-costs-400000-cover-soda-tax
.
Re: Philadelphia Soda Tax Forces Local University To Hike Student Costs By $400,000
Posted by:
beHmW
()
Date: March 16, 2017 09:53PM
You can simply raise the tax to pay for the additional unemployment. Duh!
Re: Philadelphia Soda Tax Forces Local University To Hike Student Costs By $400,000
Posted by:
PNLGt
()
Date: March 16, 2017 10:06PM
Apparently not, because at some point, people stop buying the product altogether (AKA demand destruction) and the tax revenue drops.
Re: Philadelphia Soda Tax Forces Local University To Hike Student Costs By $400,000
Posted by:
Vexxxed
()
Date: March 17, 2017 08:20AM
PNLGt Wrote:
-------------------------------------------------------
> Apparently not, because at some point, people stop
> buying the product altogether (AKA demand
> destruction) and the tax revenue drops.
Look at a map. Philly is about half the distance across the Delaware River from Jersey.
No one is stopping their shopping habits. They've simply changed shopping locations.
It's not booze and there is no law against transporting "sugary drinks" across the Benjamin Franklin Bridge.
The tax isn't hurting the people, just the large scale commercial and education entity's.
Guaranteed, there's not a roach coach or pizza shop or either of the famous cheese stake joints that isn't supplementing what they order from the distributor with what can be bought with a 5 minute ride to Jersey.
They'll be collecting the tax.........but not paying all they collect to the mayor.
-------------------------------------------------------
> Apparently not, because at some point, people stop
> buying the product altogether (AKA demand
> destruction) and the tax revenue drops.
Look at a map. Philly is about half the distance across the Delaware River from Jersey.
No one is stopping their shopping habits. They've simply changed shopping locations.
It's not booze and there is no law against transporting "sugary drinks" across the Benjamin Franklin Bridge.
The tax isn't hurting the people, just the large scale commercial and education entity's.
Guaranteed, there's not a roach coach or pizza shop or either of the famous cheese stake joints that isn't supplementing what they order from the distributor with what can be bought with a 5 minute ride to Jersey.
They'll be collecting the tax.........but not paying all they collect to the mayor.
Re: Philadelphia Soda Tax Forces Local University To Hike Student Costs By $400,000
Posted by:
Cucks for Clinton
()
Date: March 17, 2017 08:22AM
Just a libtard mayor deluding himself into thinking that he's above the law of economics. Typical.
Re: Philadelphia Soda Tax Forces Local University To Hike Student Costs By $400,000
Posted by:
Vexxxed at the dipshittery
()
Date: March 17, 2017 07:26PM
Vexxxed Wrote:
-------------------------------------------------------
> PNLGt Wrote:
> --------------------------------------------------
> -----
> > Apparently not, because at some point, people
> stop
> > buying the product altogether (AKA demand
> > destruction) and the tax revenue drops.
>
>
> Look at a map. Philly is about half the distance
> across the Delaware River from Jersey.
>
> No one is stopping their shopping habits. They've
> simply changed shopping locations.
>
> It's not booze and there is no law against
> transporting "sugary drinks" across the Benjamin
> Franklin Bridge.
>
> The tax isn't hurting the people, just the large
> scale commercial and education entity's.
>
> Guaranteed, there's not a roach coach or pizza
> shop or either of the famous cheese stake joints
> that isn't supplementing what they order from the
> distributor with what can be bought with a 5
> minute ride to Jersey.
>
> They'll be collecting the tax.........but not
> paying all they collect to the mayor.
You're a moron. LEARN ECONOMICS.
-------------------------------------------------------
> PNLGt Wrote:
> --------------------------------------------------
> -----
> > Apparently not, because at some point, people
> stop
> > buying the product altogether (AKA demand
> > destruction) and the tax revenue drops.
>
>
> Look at a map. Philly is about half the distance
> across the Delaware River from Jersey.
>
> No one is stopping their shopping habits. They've
> simply changed shopping locations.
>
> It's not booze and there is no law against
> transporting "sugary drinks" across the Benjamin
> Franklin Bridge.
>
> The tax isn't hurting the people, just the large
> scale commercial and education entity's.
>
> Guaranteed, there's not a roach coach or pizza
> shop or either of the famous cheese stake joints
> that isn't supplementing what they order from the
> distributor with what can be bought with a 5
> minute ride to Jersey.
>
> They'll be collecting the tax.........but not
> paying all they collect to the mayor.
You're a moron. LEARN ECONOMICS.
Re: Philadelphia Soda Tax Forces Local University To Hike Student Costs By $400,000
Posted by:
Vexxxed
()
Date: March 17, 2017 08:29PM
Vexxxed at the dipshittery Wrote:
-------------------------------------------------------
> You're a moron. LEARN ECONOMICS.
Thanks for that stunning observation and addition to the discussion at hand.
However..........don't you think you should actually get a job before giving out any advice?
-------------------------------------------------------
> You're a moron. LEARN ECONOMICS.
Thanks for that stunning observation and addition to the discussion at hand.
However..........don't you think you should actually get a job before giving out any advice?
Re: Philadelphia Soda Tax Forces Local University To Hike Student Costs By $400,000
Posted by:
kjbKo
()
Date: March 17, 2017 08:50PM
Tax Pat's & Geno's cheesesteaks NOW!
Re: Philadelphia Soda Tax Forces Local University To Hike Student Costs By $400,000
Posted by:
X6444
()
Date: March 17, 2017 10:03PM
Government programs cost money, and it has to be raised somehow. A tax on sodas wouldn't be my first choice, but to its critics I ask "What tax would you have imposed or raised instead?"
Re: Philadelphia Soda Tax Forces Local University To Hike Student Costs By $400,000
Posted by:
The.Green.Manalishi
()
Date: March 17, 2017 10:44PM
kjbKo Wrote:
-------------------------------------------------------
> Tax Pat's & Geno's cheesesteaks NOW!
What a disappointment...I made a road trip up there a few years ago and it was so fucking disgusting. Talk about taking a once proud brand and running it into the ground...
They should be taxed...the strain I put on Pholly's sewer system with my processed Pat steak and Geno's steak was not insignificant...
-------------------------------------------------------
> Tax Pat's & Geno's cheesesteaks NOW!
What a disappointment...I made a road trip up there a few years ago and it was so fucking disgusting. Talk about taking a once proud brand and running it into the ground...
They should be taxed...the strain I put on Pholly's sewer system with my processed Pat steak and Geno's steak was not insignificant...