Corp to absorb new soda tax, continue charging $1

The Corp plans to absorb a new tax on sugared drinks as a business cost, maintaining the price of 20 ounce bottles at one dollar.

The law, which goes into effect on October 1, levies a six percent sales tax on sodas, sports drinks, and other sweet drinks sold in D.C. The revenue from the tax will go towards mandatory physical education programs and healthier lunches at schools.

“For our management team, the choice here was a simple one: pass on a price increase to our fellow students or absorb that increase and continue to sell Coke at the cheapest rate in the region,” Corp CEO Brad Glasser (COL ’11) wrote in an email. “It’s just a little sign of our appreciation for all the support the Georgetown community has shown the Corp.”

Good work, Students of Georgetown, Inc! If you could only do something about those long lines at Vittles.

Photo: Flickr user “petesfamily

8 Comments on “Corp to absorb new soda tax, continue charging $1

  1. This will soon be followed by a criticism of the University when, I suppose, they do raise the price in vending machines. If they don’t raise the price, it means the University pays out of pocket, which then translates into lost revenue that could be spent on something else. But, let the howling begin.

    (Of course, raising the price to cover the tax, just increases the tax. You can never catch up, right? $1.00 goes to $1.06, which is then, with tax, $1.12. Am I doing that right? Math is hard.)

  2. No, you don’t have to raise the price to cover the tax. Just let consumers pay a tax on top of the price, which is what the tax actually is. The Corp is actually lowering the price of soda – from $1 to $0.94.

  3. It also means less money to be donated back to the school. Especially on top of the rather large impact the mice infestation in midnight mug is apparently causing

  4. You do realize that if there are mice in Midnight Mug, it’s because there are mice in the LIBRARY, right? The school’s library? The one that the school is responsible for maintaining? That’s like blaming the person in a Village B apartment for a mouse when really, it’s obviously a building-wide problem if pests have gotten in.

  5. Agreed Ali: All Hail the Corp!

    I was initially really upset about this soda tax, and was about to go off on a tirade about US agriculture subsidies and protectionist policies towards sugar, but it looks like this law just extended the existing 6% sales tax to soda, which had previously been exempt. All-in-all a rather reasonable move.

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