January 8, 2018 1:09PM # Backers of Soft Drink Taxes Need To Settle On a Seattle Story By [Walter Olson](https://www.cato.org/people/walter-olson) --- SHARE The city of Seattle has now put its stiff new 1.75 cents per ounce tax on sugary beverages into effect, and Costco managers in the tech city, much to their credit, have not hesitated to post signs informing shoppers of its impact. According to a reporter’s [photo](https://twitter.com/DeedeeKIRO7/status/949404423754694656), the sign atop a Gatorade Frost Variety Pack lists the regular Costco price of $15.99 along with $10.34 in newly added Seattle tax for a total of $26.33. Helpfully, an adjacent sign advises shoppers that the same item “is also available at our Tukwila and Shoreline locations without City of Seattle Sweetened Beverage Tax.” Following [KIRO7 News coverage](http://www.kiro7.com/news/local/sticker-shock-over-seattles-new-sugary-drink-tax/677490924) of the story, Scott Drenkard of the Tax Foundation wrote [a funny Twitter thread](https://twitter.com/ScottDrenkard/status/950054779815976960) on the positions taken by the various advocates: - “First they [interview people at the Costco](https://twitter.com/ScottDrenkard/status/950055408730869761) who are rightfully shocked at how high prices on soda and sports drinks are now (they are almost doubled).” - “Then they [interview a public health advocate](https://twitter.com/ScottDrenkard/status/950056137893793792) who says ‘that’s right! We want these prices to change people’s behavior and slow sales!’ ” - “Then they [talk to the consumer](https://twitter.com/ScottDrenkard/status/950058868389924866), ‘think you’ll change your behavior, maybe even shop somewhere else?’ And she’s like, ‘ya the Tukwila store is close enough.’ Then they ask a city council member if this will hurt local biz, who says ‘there is no data’ suggesting that.” - “Then the SAME public health advocate says that people won’t respond to price increases, shopping elsewhere because it isn’t ‘worth their while.’ ” - “You can’t have it both ways people! The tax is either big enough to elicit behavior change, which would slow sales and hurt local biz and potentially reduce calories, or it isn’t. Get your stories straight!” In 2016 [I wrote](https://www.cato.org/publications/commentary/soda-tax-philly-chooses-cycle-failure) about Philadelphia’s soda tax that “while all taxes are evaded to some extent, excise taxes are especially subject to evasion based on local geography”, and [followed up](https://www.overlawyered.com/2016/07/philadelphia-soda-tax/) on the Philly measure’s possible openings for unlawful evasion and eventual public corruption. Seattle authorities intend to use the hoped-for $15 million revenue stream to fund various causes and organizations including an effort to bring fresh fruits and vegetables to urban neighborhoods, even though the once-voguish “food deserts” theory blaming dietary choices on the retail environment has [suffered](https://www.overlawyered.com/2012/04/debunking-the-food-desert-myth/) one [debunking](https://www.rand.org/news/press/2017/04/25.html) [after](http://reason.com/blog/2016/06/13/500-million-later-usda-on-food-deserts) [another](http://marginalrevolution.com/marginalrevolution/2017/12/political-incorrect-paper-day-food-deserts.html) in recent years. ##### Related Tags [Regulation](https://www.cato.org/regulatory-studies), [Tax and Budget Policy](https://www.cato.org/tax-budget-policy) [![Creative Commons License](/build/cato_2020/images/creative-commons.svg)](http://creativecommons.org/licenses/by-nc-sa/4.0/) This work is licensed under a [Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License](https://creativecommons.org/licenses/by-nc-sa/4.0/).