Connect with us

Uncategorized

Op-Ed: Why Michael Bloomberg’s Pro-Soda-Tax Ad Is Misleading

Published

on

By Lawrence J. McQuillan

 

Former New York City Mayor Michael Bloomberg is helping to bankroll a television-commercial campaign in favor of proposed soda taxes in Oakland and San Francisco, known as Measure HH and Proposition V, respectively, both of which will appear on the November ballot. 

 

You can’t miss the commercial if you live in the Bay Area, as it seems to air a thousand times a day on local TV stations. Unfortunately, from an economist’s perspective, the pro-tax commercial is misleading.

 

The Oakland and San Francisco soda taxes would charge distributors an additional one-cent per ounce of soda they sell (or $2.88 per case). The tax would also apply to other sugar-sweetened drinks.

 

The Bloomberg ad, which can be viewed below, says, “It’s not a grocery tax, it’s a soda tax.” But this is not entirely true from an economics perspective.

 

There’s an important difference between the “imposition of a tax,” on the one hand, and the “incidence of a tax,” on the other hand. Imposition is where the tax is technically levied. Incidence refers to who really pays the tax (the tax burden), which is one of the most important questions regarding any tax. Every microeconomics principles textbook covers this topic.

 

It’s true that the soda tax is levied technically on distributors of sodas, but this is merely the imposition of the tax. Any cost increase to distributors because of the tax can be passed on by them to grocers who, in turn, can pass it on to their customers by increasing the price of any product or products in their store.

 

So the incidence of the tax—who really pays the tax—falls on grocery buyers, whether they drink sodas or not. The tax is also a regressive tax, meaning it would harm low-income families disproportionately more than high-income families.

 

Bloomberg and the pro-tax crowd are misleading the public with the ad.

 

The ad ends with: “Didn’t anyone tell big soda it’s not nice to lie?” But it’s Michael Bloomberg and soda-tax proponents that are not telling the whole truth: grocery customers will face higher grocery bills as a result of the soda tax.

 

The soda tax is also akin to telling your child this: “Your classmate Lawrence is not drinking what we think he should. So it’s ok to steal money from Lawrence and all his classmates until Lawrence stops drinking bad things.” Hopefully no parents would tell their child this.

 

Neither should this immoral and flawed logic be the basis of public policy. But it’s the logic behind Measure HH and Prop V. The lesson being taught by the pro-tax side is “It’s ok to steal, as long as you think you’re doing right by it.”

 

Taxation is always theft; “legal” theft, but theft nevertheless. It’s taking money by force from others.

 

Didn’t anyone tell soda-tax advocates it’s not nice to steal and lie?

 

Courtesy of the Independent Institute

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Uncategorized

Rest in Peace: A.M.E. Pastor and L.A Civil Rights Icon Cecil “Chip” Murray Passes

The Rev. Dr. Cecil L. “Chip” Murray, former pastor of First African Methodist Episcopal Church (FAME) in Los Angeles, died of natural causes April 6 at his Windsor Hills Home. He was 94. “Today, we lost a giant. Reverend Dr. Cecil Murray dedicated his life to service, community, and putting God first in all things. I had the absolute honor of working with him, worshiping with him, and seeking his counsel,” said Los Angeles Mayor Karen Bass of the dynamic religious leader whose ministry inspired and attracted millionaires as well as former gang bangers and people dealing with substance use disorder (SUD).

Published

on

The Rev. Dr. Cecil L. “Chip” Murray, former pastor of First African Methodist Episcopal Church (FAME) in Los Angeles, died of natural causes April 6 at his Windsor Hills Home. He was 94.

“Today, we lost a giant. Reverend Dr. Cecil Murray dedicated his life to service, community, and putting God first in all things. I had the absolute honor of working with him, worshiping with him, and seeking his counsel,” said Los Angeles Mayor Karen Bass of the dynamic religious leader whose ministry inspired and attracted millionaires as well as former gang bangers and people dealing with substance use disorder (SUD).

Murray oversaw the growth of FAME’s congregation from 250 members to 18,000.

“My heart is with the First AME congregation and community today as we reflect on a legacy that changed this city forever,” Bass continued.

Murray served as Senior Minister at FAME, the oldest Black congregation in the city, for 27 years. During that time, various dignitaries visited and he built strong relationships with political and civic leaders in the city and across the state, as well as a number of Hollywood figures. Several national political leaders also visited with Murray and his congregation at FAME, including Presidents George W. Bush and Bill Clinton.

Murray, a Florida native and U.S. Air Force vet, attended Florida A&M University, where he majored in history, worked on the school newspaper and pledged Alpha Phi Alpha Fraternity.  He later attended Claremont School of Theology in Los Angeles County, where he earned his doctorate in Divinity.

Murray is survived by his son Drew. His wife Bernadine, who was a committed member of the A.M.E. church and the daughter of his childhood pastor, died in 2013.

Continue Reading

Uncategorized

Court Throws Out Law That Allowed Californians to Build Duplexes, Triplexes and RDUs on Their Properties

Charter cities in California won a lawsuit last week against the state that declared Senate Bill (SB) 9, a pro-housing bill, unconstitutional. Passed in 2021, SB 9 is also known as the California Housing Opportunity and More Efficiency Act (HOME). That law permits up to four residential units — counting individual units of duplexes, triplexes and residential dwelling units (RDUs) – to be built on properties in neighborhoods that were previously zoned for only single-family homes.

Published

on

Charter cities in California won a lawsuit last week against the state that declared Senate Bill (SB) 9, a pro-housing bill, unconstitutional.

Passed in 2021, SB 9 is also known as the California Housing Opportunity and More Efficiency Act (HOME). That law permits up to four residential units — counting individual units of duplexes, triplexes and residential dwelling units (RDUs) – to be built on properties in neighborhoods that were previously zoned for only single-family homes.

A Los Angeles Superior Court Judge ruled in favor of the cities, pointing out that SB 9 discredited charter cities that were granted jurisdiction to create new governance systems and enact policy reforms. The court ruling affects 121 charter cities that have local constitutions.

Attorney Pam Lee represented five Southern California cities in the lawsuit against the state and Attorney General Rob Bonta.

“This is a monumental victory for all charter cities in California,” Lee said.

However, general law cities are excluded from the court ruling as state housing laws still apply in residential areas.

Attorney General Bonta and his team are working to review the decision and consider all options that will protect SB 9 as a state law. Bonta said the law has helped provide affordable housing for residents in California.

“Our statewide housing shortage and affordability crisis requires collaboration, innovation, and a good faith effort by local governments to increase the housing supply,” Bonta said.

“SB9 is an important tool in this effort, and we’re going to make sure homeowners have the opportunity to utilize it,” he said.

Charter cities remain adamant that the state should refrain from making land-use decisions on their behalf. In the lawsuit, city representatives argued that SB 9 eliminates local authority to create single-family zoning districts and approve housing developments.

Continue Reading

Uncategorized

Funds for Down Payments and Credit Repair Given to Black First Time Homebuyers

The California Civil Rights Department (CRD) won a $10,000 fair housing settlement last November against a property management company, CIM Group LP, a global real estate company headquartered in Los Angeles, and property owner, RACR Sora, LLC, for implementing a blanket ban on renting to tenants with criminal histories at Sora Apartments in Inglewood. Three months earlier, the department, which enforces California’s civil rights laws, won another $20,000 civil rights settlement against a Lemon Grove property manager, who had targeted a Black tenant with a series of racist actions and threats of violence.

Published

on

By McKenzie Jackson, California Black Media

The California Civil Rights Department (CRD) won a $10,000 fair housing settlement last November against a property management company, CIM Group LP, a global real estate company headquartered in Los Angeles, and property owner, RACR Sora, LLC, for implementing a blanket ban on renting to tenants with criminal histories at Sora Apartments in Inglewood.

Three months earlier, the department, which enforces California’s civil rights laws, won another $20,000 civil rights settlement against a Lemon Grove property manager, who had targeted a Black tenant with a series of racist actions and threats of violence.

CRD Director Kevin Kish said the department investigates cases of apparent racial bias in housing and sometimes more subtle acts of prejudice like nuisance-free or crime-free housing policies or holding tenants to different standards based on their race.

Kish said, “People will get evicted if they call the police. This can negatively impact victims of domestic violence. We also see these no-crime ordinances, or no-crime policies, used in racially discriminatory ways. If there is some kind of incident, and the police are called and it involves a Black family, then they get evicted, but other folks aren’t necessarily evicted.”

On April 11,1968, a week after Rev. Dr. Martin Luther King, Jr. was assassinated, President Lydon B. Johnson signed the Fair Housing Act, which prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, and nationality.

Kish noted that William Byron Rumford, the first Black California State Assemblymember, who represented Berkley and Oakland, spearheaded the passing of the Rumford Act in 1963. That law sought to end discriminatory housing practices in the Golden State, five years before the Fair Housing Act became law.
Real estate agent and housing advocate Ashley Garner is the director of the CLTRE Keeper Home Ownership program. That organization gave 25 Black, indigenous, and people of color $17,500 each in down payment and credit repair support to purchase a home in Oak Park, a traditionally Black neighborhood in Sacramento, last fall. CLTRE obtained a $500,000 grant from the city of Sacramento to award the funds to the residents after they completed an eight-week homeownership program.

In 2021, the California Housing Finance Agency (CalHFA) noted that around four in 10 Black California families owned homes, which trails that of White, Asian-American and Latinos.
According to Forbes, the median price for a home in California is over $500,000, which is double the cost of a home in the rest of the country.

Black lawmakers recently introduced their Reparations Priority Bill Package that includes support for Black first-time homebuyers, homeowners’ mortgage assistance and property tax relief for neighborhoods restricted by historic redlining.

California Housing Finance Agency (CalHFA) spokesperson Eric Johnson said CalHFA helps prospective low-income and moderate-income Californians purchase homes by offering down payment and closing cost aid. “There are lots of people who have steady jobs, good credit scores, constant income, but they haven’t been able to save up the money that traditional banks need or want to see for a down payment,” Johnson stated. “We help those folks out. We give a loan for the down payment to get them over that hurdle.”
CRD and the Department of Real Estate hosted “Fair Housing Protections for People with Criminal Histories” Zoom call on April 10.

On April 25, CRD will also hold Zoom seminars focused on advocating for fair housing for people with disabilities.

Continue Reading

Subscribe to receive news and updates from the Oakland Post

* indicates required

CHECK OUT THE LATEST ISSUE OF THE OAKLAND POST

ADVERTISEMENT

WORK FROM HOME

Home-based business with potential monthly income of $10K+ per month. A proven training system and website provided to maximize business effectiveness. Perfect job to earn side and primary income. Contact Lynne for more details: Lynne4npusa@gmail.com 800-334-0540

Facebook

#NNPA BlackPress1 month ago

Reflecting on Black History Milestones in Birmingham AL

Bay Area1 month ago

CITY OF SAN LEANDRO STATE OF CALIFORNIA PUBLIC WORKS DEPARTMENT ENGINEERING DIVISION NOTICE TO BIDDERS FOR ANNUAL STREET OVERLAY/REHABILITATION 2019-21 – PHASE III

Activism1 month ago

Oakland Post: Week of February 18 – 24, 2026

Activism1 month ago

Oakland Post: Week of February 25 – March 3, 2026

#NNPA BlackPress1 month ago

PRESS ROOM: NBA Hall of Fame Nominee Terry Cummings Joins 100 Black Men of DeKalb County to Launch Victory & Values Initiative

#NNPA BlackPress1 month ago

Trump’s MAGA Allies are Creating Executive Order Plan to Steal the 2026 Midterms

Activism4 weeks ago

Oakland Post: Week of March 4 – 10, 2026

#NNPA BlackPress1 month ago

U.S. manufacturing rebounds – how foundry services are adapting to rising demand

Bay Area entrepreneurs attend the Alley-Oop Accelerator, a small business incubation program at Chase Oakland Community Center. Photo by Carla Thomas.
Activism1 month ago

Chase Oakland Community Center Hosts Alley-Oop Accelerator Building Community and Opportunity for Bay Area Entrepreneurs

#NNPA BlackPress1 month ago

Poll Shows Support for Policies That Help Families Afford Child Care

#NNPA BlackPress1 month ago

OP-ED: One Hundred Years of Black Workers Telling the Truth

#NNPA BlackPress1 month ago

Advancements in solar technology that are changing the way we power the world

#NNPA BlackPress4 weeks ago

Woman’s Search for Family’s Roots Leads to Ancestor John T. Ward – A Successful Entrepreneur and Conductor on the Underground Railroad

#NNPA BlackPress1 month ago

PRESS ROOM: Civil Rights TV Launches in Selma as the World’s First 24/7 Civil Rights Television Network

#NNPA BlackPress4 weeks ago

COMMENTARY: Women of Color Shape Our Past and Future

Trending

Copyright ©2021 Post News Group, Inc. All Rights Reserved.