In the desperate search find someone to tax who won’t hold it against them, the Democrats decided to add sales tax to candy and soda. I guess they decided to write off the little kid vote in 2010.
HB10-1191 adds sales tax to sweetened drinks that have less than 50% fruit juice, and unrefrigerated candy that doesn’t have flour in it.
The cost of a twelve pack of coke or pepsi will go up 2.9%.
Representatives of both companies explained that their experience shows that a price increase of this much will cause a corresponding drop in consumption of 1.7% to 2.8%. They suggested that since their sales in Colorado have been under pressure since the 90’s and especially since the start of the recession, this bill will likely lead to lost jobs in Colorado as the companies can only stand so much damage to their bottom line. Tax increases have consequences.
The candy tax is especially goofy, as Kit Kat candy bars are not considered candy, they have flour in them, but of course Hershey candy bars are taxed. Licorice isn’t taxed, no kidding, check the label, there is flour in licorice, but sweet tarts are taxed.
It really shows desperation to raise revenue instead of doing the hard work of reforming Medicaid and our education system to balance the budget.
In economic terms, this bill sucks $18 million a year out of the private sector and plows that money into state government, meaning that investment and savings will be reduced and poor choices will be continued by government.
This bill is part of the “dirty dozen” tax increases offered by the Democrats and Governor Ritter this year. As the Pueblo Chieftain editorialized today, elections have consequences. Do not forget who has done this to you.