Wouldn’t the price go up irrespective of which side you tax it on? Obviously if this is a megacorp, they could spread it out over unrelated products, but in the end its not like theyll roll over, take the corporate tax and leave the product at the old price. Is it being a poor tax even that bad of a thing? This is not a necessity and poor people are generally going to be the ones that suffer from poor diet / lifestyle choices in very big part due to the price/calorie aspect of junkfood et al. Lets be real, if you buy a bar once a week, 1.29->3.29 is not a big deal.
Also, we do have tax on sugarry soft drinks in the EU (atleast my country), it is just laughably small compared to EtOH and tobacco). I personally always have thought that anything with added sugar beyond a certain amount should get a heavy tax, conditional on this tax being funneled into healthcare / public health programs.
enragedchowder@lemmy.ca 1 year ago
It doesn’t make a difference which side you tax. If consumers are taxed then corporations will still feel it through reduced demand for their product. If corporations are taxed, consumers will still feel it through increased prices. The tax burden does not depend on who is taxed, but rather how elastic supply and demand are.
irmoz@reddthat.com 1 year ago
It sure makes a difference to the people buying it, that’s the point
enragedchowder@lemmy.ca 1 year ago
It literally doesn’t. The price is the same either way. Reduced demand from the higher tax makes it so producers will lower prices. This is really basic microeconomics.
From Wikipedia: “tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply”
en.m.wikipedia.org/wiki/Tax_incidence
irmoz@reddthat.com 1 year ago
I have never once seen this happen… i just see prices rise