Wednesday, May 13, 2009

The Tax Man Cometh

Senate Democrats are considering implementing a new excise tax on soda and sugary drinks to help pay for Obama's plans for socialized medicine.

The left has demonized soda and sugar-laden drinks, and while drinking too many of them can be a health issue, singling out specific products for taxation is consistent with the new economic policies of the Obama era: the government picking winners and losers, favoring certain industries, companies, and products over others.

Suffice to say, the government has no role in any of this.

But the tax on soda, if enacted, would violate Obama's tax pledge to not raise taxes on people making below $250,000 per year. Almost all of the soda in the country is consumed by those earning below that threshold.

But this isn't surprising, because the enormous spending plans and budget deficits Obama is unleashing on America is leading to higher taxes, and most of the income in the country is earned by people making below $250,000 per year.

Obama and the Democrats are introducing stealth taxes on lower income groups so it isn't as visible to them. They have already raised excise taxes on cigarettes (see here), and their plans for carbon taxes means products and services will rise in price to reflect this higher cost of doing business (see here).

Excise taxes on soda are more of the same.

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