Boulder voters could be asked to place an excise tax on soda and other sugary drinks on the city’s November ballot. The tax, which would be paid by distributors, not consumers, would fund programs promoting exercise and healthy eating. (The Associated Press)
Re: Excise tax on soda, sugary drinks could make it to Boulder ballot, soda, April 23 news brief.
Your article says a proposed ballot measure in Boulder would require distributors of soda to pay a tax of up to 2 cents per ounce on beverages with at least 5 grams of sugar. Consumers would not pay the proposed tax. That is absolutely false! No matter where in the supply system you put a tax, or other regulatory burden, the cost will always be paid by the end user. In fact, I m sure the intended purpose of this proposal is to increase the cost of these drinks to the consumer, thereby reducing demand for these products. If all goes according to plan, the producers and distributors will suffer a loss in the form of reduced sales.
Mike Heiny, Colorado Springs
This letter was published in the May 1 edition.
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