Originally Posted by MikersSU
The foolish thing about the soft drinks is that it's targetting soft drinks only. Why pick out one type of food? That's silly. The requirement I believe only has to do with the content of fruit juice. This affects even the juice boxes kids drink!
Speculation, but I suspect that the lines are being drawn this way because the law needs to be specific about what is covered and what is not. A law can't be general, it can't just cover "unhealthy food". So by specifying beverages made a certain way with a certain amount of juice content, or whatever the specifics are (I'm not a NY resident, so I have no idea what's really going on there), they can get a law on the books that might survive challenges.
The obvious downside is that the more specific such a law is, the easier it is to work around. If the law covers drinks that are only 20% or less juice, then make the drink with 25% juice. Might cost more to make, but the taxes would be lower; so customers buy more, and more sales = more profit.
This proposal is a mess and even if it passes the officials are predicting a ~20 Billion dollar shortfall...again next year. This is stupid. They're predicting that this plan will not help yet they're going through with this.
Well, let's not be hasty in those kind of decisions. In every legislative proposal, those that are against it will argue and show data to prove that it will not work, and those that are for it will argue and show data to prove that it WILL work. Each side is probably wrong as often as they are right. In reality, economic policy changes are so complex due to their many interactions and slow pace of making a difference (positive or negative) that it is largely impossible to predict with certainty that one particular change will be effective or not.
I mean, watch the economic news shows. Get 100 economists in a room and you'll get 100 different opinions on what's going on and how to fix it. It's amazing that these folks getpaid for what they do, it all seems like random guesses when there are so many varied opinions out there.
And finally on that point, just because one tax plan doesn't completely fill a projected budget hole doesn't mean it shouldn't be done. It just means that the hole is probably too large for any one single tax proposal to fill! Sucks to be us right now, that's for sure.