Wednesday, January 12, 2011

Maryland Economics: Tax Beverages and Their Producers into Oblivion

I have always felt that liberal urban politicians would make the best teachers of economics.  They know how to illustrate economic principles through practical applications like nobody else.  Last year, the hoodlums on the Baltimore City Council passed a 2-cent beverage tax on all bottled beverages sold in the city.  Only a few months later, Pepsi plans to shut down their production of soda in Baltimore.  The Baltimore Sun reports:

"The Pepsi plant in Baltimore will no longer make soda, and the company plans to lay off 77 people as officials have decided to stop manufacturing operations — a decision they blame in part on a controversial new beverage tax in the city.
The last cans and 2-liter bottles of Pepsi-Cola, Diet Pepsi, Mountain Dew and other sodas ran through the production line Monday morning. Executives at Pepsi Beverages Co. told workers in meetings later in the day that production would be halted for good. Pepsi officials said they would work out details regarding the layoffs, including potential severance, with the local Teamsters union."

Now, all of the drones who voted for these crooks will have to suffer with the higher costs of beverages and the loss of jobs that will continue to ensue as a result of the tax.  Pepsi will just take their business to states that appreciate capitalism.

Since the beverage tax worked so well in Baltimore, the Maryland legislature is planning to increase alcohol taxes on all wine, beer, and liquor sold in Maryland.  Eventually, all beverage producers and retailers will be chased out of the state.  The Maryland politicians provide the most effective stimulus of economic growth for Pennsylvania and Virginia!  Unfortunately, with full control of Maryland government and a drone-like electorate, the Democrats and their tax hikes are virtually insuperable.

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