I'm just appalled we're continuing with a regressive tax system that disproportionately hurts the poor, even if soda is unhealthy.https://twitter.com/ericacbarnett/status/870043489530134528 …
I'm glad you see that either way consumers pay the tax. What, then, is the difference between collecting at the factory vs. the register?
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Disincentivising production over consumption.
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People will consume what is available to consume, even at stupid prices. You can't consume what isn't produced.
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So adding ten cents to the price of soda at the factory discourages production, but not at the cash register? Why would that be?
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Putting expenses directly on producer can be disincentive to production, tax on consumers doesn't directly hurt their bottom line.
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In principle the effect should be the same. In practice, psychology is important, and who sees which charge matters.
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The psychology I'm basing my thoughts on are that people will consume what is available, companies won't produce without guaranteed margins.
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Drug companies come to mind, specifically.
End of conversation
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