Could a two-cent tax on soft drinks cost the state jobs?
The Washington Beverage Association thinks so. The industry-advocacy group is speaking out against the governor’s plan to tax two pennies for 12-ounces of soft drinks, saying the revenue generator will shut businesses down.
Creative Commons photo, Flickr
“The Governor’s proposed excise tax on soft drinks is a short-term fix with long-term harm. This tax will severely impact our state’s bottling industry by causing massive family-wage job losses and forcing many bottlers out of business,” said WBA president Tim Martin. “This will create more budget woes, not solve them.”
He went on to say: “The soft drinks market is extremely price sensitive. There is a direct correlation between price and sales. For every 1 percent the price goes up, the volume drops 1 percent. Sales, which already are down due to the poor economy, will fall off a cliff if we try to pass this increase onto consumers. The tax increase is too big for an individual company to absorb and stay in business.”
More from Martin: “Bottlers in Washington employ thousands of individuals across the state in family-wage jobs with generous benefits. With Washington state’s unemployment rate at 9.5 percent, we urge our legislators to consider ways to raise funds that preserve the jobs we have and maintain long-standing community businesses. Throwing people out of work is no way to support an economic recovery.”
Martin and other bottlers say the industry is already struggling, operating on a “razor-thin margin in a highly competitive marketplace.” They say the industry can’t absorb higher taxes.
Know a small business we should write about? Contact Herald writer Amy Rolph at arolph@heraldnet.com.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
