Not so refreshing

One of the ways we're trying to balance the budget is to suspend or eliminate some special tax exemptions, like the one that applies to candy and soft drinks.

Repealing the exemption would let the state's 2.9% sales tax apply to soda and candy.

We haven't heard much from candy companies, but the soda industry is fighting hard to keep the tax break.

We got dozens of letters from people who work at the Pepsi Bottling plant in Denver.  They were handwritten, but nearly-identical.

One letter stood out:

Please read this entire letter. I know you are inundated with mail, but this is important. I work for Pepsi in Denver.

The company has recently assigned us to write letters...  The intent is for us to express our opposition into taxing beverages.

I, unlike many around me, strongly support a tax on beverages that are loaded with corn syrup or sugar. I am afraid that if my supervisors where aware of my position, that my job would be in jeopardy, but I feel this issue and the health of future generations is more important than corporate earnings for shareholders.

I have almost given up on the idea that Washington is not run by corporate America, however there is still hope for the state governments stand up and say no to corporate interests and do what is right for the people. I trust you know what is right, but like my Grandpa always use to say “It’s no what you know about the problem, but what you do about it that matters.”

Feel free to contact me if you would like more information regarding my position.

I'm keeping his name a secret so that he can keep his job.

Coca-Cola sent a dozen or so employees to testify in committee.  They said they were afraid they'd lose their jobs if Coke loses its sales tax break.

They're boss emphasized the point.

Chris Harr, president of the Colorado Beverage Association and Denver-based general manager for the Pepsi Bottling Group, said that adding 2.9 percent sales tax to soda would reduce sales of soft drinks by as much as 2.8 percent and that such a sales dip would cost some 800 Coloradans their jobs.

That's from the Denver Business Journal, but We heard the same testimony during the committee hearing.

Is it true?  I doubt it.  For one thing, the soda companies don't really set the retail prices.  They sell wholesale; stores decide what to charge their customers.  (Coke and Pepsi do force some retailers to charge higher prices, but they do it by charging them a higher wholesale price and keeping them from buying their products for less from places like Costco).

If a sales tax raises the price (which in turn, the companies argue, reduces sales), then the price should be higher in states that impose a sales tax on soda.  Plenty do.

Fourteen states charge sales tax on soda as part of a general tax on all food.  Twenty-one states charge a higher tax on soda than they do on other foods.

Texas and California, for instance, have a special 6.25% tax on soda.  Colorado, as of now, has no tax on soda.  Here's how the states compare on soda prices:

Product	Colorado (No Tax)	California (6.25%)	Texas (6.25%)
2 Liter Coca-Cola	$1.69	$1.69	$1.69
2 Liter Safeway Soda	$0.75	$0.75	$0.75
12 Pack Soda	$4.99	$4.99	$4.99

The prices are identical.  I got them by comparing supermarket ads.

Colorado (No Tax)

California (6.25% Tax)

Texas (6.25% Tax)