Taxing Away Sweet Drinks: Plenty of Baptists, But No Bootleggers

Thursday, November 27, 2014
Authors: 
Adam C. Smith
Bruce Yandle

Amidst all the revelry and regret concerning the Republican election-day sweep, it was easy to miss another groundbreaking victory. Voters in the city of Berkeley, California, gave roaring support [1] for a one-cent per ounce tax on sugary drinks, the first ever in the United States.

As many as 30 previous attempts [2] by U.S. cities and states to tax away sugar in soda have failed, including ballot efforts in San Francisco, Richmond, and El Monte, California, this year alone. What seems like a perfect opportunity for bootleggers and Baptists [3] to perform their political magic just hasn't been working very well.

Why "bootleggers and Baptists"? Recall that both historically [4] supported laws that shut down liquor stores on Sunday, but for entirely different reasons. Taking the moral high ground, the Baptists fervently hoped to see a decline in alcohol consumption. Just as fervently, the bootleggers longed to eliminate competition at least for one day a week. Together, they formed a powerful duo.

Continue reading [5]


Source URL: https://www.mercatus.org/expert_commentary/berkeley-soda-tax-bootleggers-baptists

Links
[1] http://online.wsj.com/articles/berkeley-voters-approve-tax-on-sugary-drinks-san-francisco-ban-falls-short-1415189224
[2] http://www.bbc.com/news/business-29911804
[3] http://reason.com/archives/2012/02/09/warren-buffett-baptist-and-bootlegger
[4] https://www.mercatus.org/video/bootleggers-and-baptists-conversation-bruce-yandle
[5] http://reason.com/archives/2014/11/27/taxing-sweet-drinks-baptists-bootleggers

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