Reason Mag: After driving up the cost of soda and other sugary drinks with a new tax, the mayor of Philadelphia is now trying to blame businesses for charging higher prices (and for the outrage those prices have generated).Mayor Jim Kenney, who proposed the soda tax and championed its passage through city council last year, told reporters on Tuesday it's not the new 1.5-cents-per-ounce tax that's making it more expensive to buy a can of Coke in Philly. No, according to the mayor, those higher prices are caused by city businesses price gouging their customers in order to stir up opposition to the tax.
When boneheads in Sacramento fixed energy prices according to source, they discovered that the most elastically prices sources are sold first, then the price fixed sources sold last. The shifting point designed to maximize income.
We see the same thing here. Soda is taxed differently in the same market, sell the elastically priced stuff preferentially. No one is in a hurry to sell soda, they have a government tax. But that is exactly what the idiot mayor wanted, restricted flow of soda,why is he now complaining?
So,as near as I can see, Jim Kenney is simply trying to stick his head up his ass, good luck to him.
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