In testimony before a joint legislative hearing on taxes, Marcus Ferguson of The Business Council made clear the Council’s opposition to a proposed tax on sugared beverages.

“This additional beverage tax on soft drinks would cause serious economic impacts across New York. It would amount to lost jobs and the dislocation of existing businesses. The Governor’s plan would impose an excise tax on syrups and simple syrups at a rate of $7.68 a gallon and $1.28 a gallon on bottled soft drinks. Such a tax would raise prices on drinks leading to lost sales and jobs not only in the beverage industry but would be a loss to other businesses that supply these companies and sell their products.

When demand for a product drops substantially, the result will be a loss in jobs, as producers respond to the drop in demand by cutting back on production. This happens because as the price of a good increases demand for the product will drop, as consumers either purchase substitutes or stop buying the product altogether.”

To read the rest of the testimony click here.