The Philadelphia Inquirer reports today that Philadelphia Mayor Michael Nutter proposes a 2¢/fluid-ounce tax on beverages containing sugar. That would add 24¢ to the cost of a can of soda from the vending machine, $2.40 to the cost of a six-pack of 20-oz Pepsi bottles and $1.35 to a 2-L bottle of Mountain Dew. The city is in desperate need of cash, so sure... why not randomly add a quarter to every can of Root Beer and $2.56 tax to every gallon of chocolate milk sold within the city limits.
I don't have a degree in mathematics. But I do have a Bachelor of Science degree in Physics, a Bachelor of Science degree in Chemistry and a Ph.D. in Analytical Chemistry...Maybe I can use my 3rd grade arithmetic to muddle through the sticky math -- although I assure you it is not sticky due to sugar.
So the Coca-Cola company reports their 12-oz can of Coke Classic contains 140 Dietary Calories (that's 140 kcals for those in the know).
- The American Crystal Sugar Company claims 1 gram of sugar contains 4 Calories
- If we divide 140 Calories in 12-oz Coke / 4 Calories per gram of sugar we calculate 35 grams of sugar in a 12-oz can of Coke Classic
- Dividing 35 grams of sugar per can / 12 oz per can we calculate 2.91 grams of sugar per ounce
- The proposed tax of 2¢/oz leads to a calculation of (2¢/ounce)/(2.91grams of sugar per ounce) which equals 0.69¢ tax/1 gram sugar
- Sugar is commonly sold at the store in 5-lb bags. Given 5-lbs equals 2,268 grams, (2,268 grams/5-lbs sugar) * (0.69¢ tax/1 gram sugar), simplifies to $15.65 tax/5-lbs sugar
- A 5-lb bag of sugar typically sells for $3.60
- Calculating the ratio of Tax/Item, ($15.65 tax/$3.60)*100% = 435% Tax per 5-lb bag of sugar
Why stop there, Mayor Nutter? Why don't you propose a 650% tax on coffee and a $20/oz Sewer Usage Fee to dispose of it? The city's reputation as the Cradle of Liberty is going down the drain anyway... might as well tax it.

Next its our beer!! Oh wait ... beer is already taxed about 5 different times from the time it leaves the brewery until it reaches your lips.
ReplyDeleteNext its our beer!! Oh wait ... beer is already taxed about 5 different times from the time it leaves the brewery until it reaches your lips.
ReplyDelete