Thursday, March 4, 2010

Philadelphia Mayor Proposes 435% Tax on Sugar

Let the Carbon Taxes Begin

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).





  • 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.

2 comments:

  1. 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.

    ReplyDelete
  2. 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.

    ReplyDelete