Illinois Democrats have proposed a penny-per-ounce “sodapop tax” – a tax on sugar-sweetened drinks.
Now, when you propose a number like “a penny,” it sounds small, and many people tend to dismiss it as inconsequential. But let's do the math.
A 20 oz bottle of cola, lemon-lime, or root beer, sold alone at a gas station, might be $1.69 or so. Another twenty cents added on to that might seem unimportant, on its own, though it’s a brand new 12% tax on the purchase (and remember, there are still other taxes, like the state and local sales tax, in addition).
A typical large 32 oz soda at a fast food place (which is often half ice) might run $1.75. The thirty-two cents the Democrats want to add to that drink constitute a brand new 18% tax. You might not notice it at first, but your budget will show the shrinkage a lot faster than it did when Illinois’ already-high sales taxes were the only government paws in your lunchbreak wallet.