While traveling through Paris
this weekend, I started craving something familiar and American, so I decided
to buy a classic Coca-Cola. I was
shocked to see that the price was over four euro for one bottle! In fact, I
noticed that Coke products in general were overpriced throughout Paris . I never saw one that was pried under 3.50
euro. Of course, I bought the coke
anyway, and it was totally worth it. However, I was still curious to know why the
prices were so high. After doing a
little research, I discovered that the French government recently approved soda
tax legislation that became effective in January 2012. The tax works out to be one euro cent per
container, which doesn’t sound like much.
The actual reason that the Coke products are so expensive is because most
companies are raising the tax money by increasing their price per drink. I don’t
know how effective this tax has been, but I still saw an abundance of people
drinking Coke products everywhere that we went.
Do you think a tax like this could ever be enacted in America ? If so do you think it would be effective?
Picture from http://www.uh.edu/engines/epi1985.htm.
The only reason I can think of a reason to tax soda would be for health reasons. Mayor Michael Bloomberg of New York City recently waged war against sugary drinks and attempted to have them banned. Much like a cigarette tax, I could foresee a future where Coca-Cola is more expensive because of a tax on soda.
ReplyDeleteThe ban on soda attempted in New York City was not an actual ban, it was an attempt to limit drink size. I think limiting drink size seems much more likely than an actual ban on soda, which would be unconstitutional. I think a soda tax might definitely be attempted due to the extreme rise in obesity. However, even if it was implemented, I do not think it would stop anyone from drinking soda, just as it did not stop you Rachael. Increases on the price of gas does not stop people from buying gas just as increases in the price of cigarettes does not really reduce the number of smokers.
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