Posted on 01/11/2011 6:43:59 AM PST by JustSurrounded
BALTIMORE (WJZ) Pepsi is packing up production after deciding to stop making soda in Baltimore City, and theyre blaming the new city beverage tax. Kelly McPherson explains the decision also puts dozens of people out of work.
Pepsi will continue to transport products in and out of Hampden but no longer will carbonated beverages be made here. Seventy-five workers have lost their jobs. Pepsi says its the economic climateand something else.
In the case of Baltimore, as you may know, there was a beverage tax that was passed here and in this case, it did not help in the decision in terms of keeping the Baltimore plant open, said Pepsi spokesperson Mark Dollins.
(Excerpt) Read more at baltimore.cbslocal.com ...
Like Pepsi wouldn’t pass the expense on to their customers. No, they moved out for some other reason.
Probably right. I just thought it was interesting that they cited it. I suppose they were going to leave anyway, but had to get in a dig on behalf the soda business, since they’re still marketing in the city?
Hey! Baltimore is well known for a large surplus of job opportunities. So what’s the problem? (/s - duh!)
I’m not clear on this. Is the tax on retail or wholesale or both? If it’s on wholesale sales, then it’s easy to understand why a bottling plant would move.
When you consider the product, the price sensitivity of the consumer, the ease of shopping elsewhere for a better price, it should be no surprise. The clincher is that "city unions" were involved in the heated discussions about the tax.
We're told the city had to balance the budget and this tax surely balanced it on paper with the usual CBO-style estimate with no basis in reality. Stores report beverage sales are down so the tax revenue will also be down but more important, they have lost the tax revenue that came from the plant itself.
So ask yourself, why didn't they put the tax on the consumer side? Yes, the Pepsi products would be subject to the tax but so wouldn't those products bottled outside the city but sold within. At least it wouldn't directly impact the plant and conceivably, product sales lost within the city would be regained in the surrounding communities. But they wouldn't put their business at a comparative disadvantage.
Copy cats they just want to be just like California,broke.
send me your money
"All right, give me a Pepsi Free."
Once again, liberals destroy an economic sector.
Maryland “Freak State” PING!
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