Soda Tax
Many people love sugary drinks. They have been increasingly popular and a part of everyday life for a long time. While tasty, they may not be the healthiest. As these are extremely popular, the government has seen an opportunity to make money off of these sugary drinks by increasing tax on soda. However, the move to create a soda tax is not only for generating revenue but also to incentivize people to drink other healthier options. In my opinion, I see it is fair to impose a tax on soda to fund Kindergarten. The soda companies are making a lot of profit because they market their products more to people with low income. Therefore taxing soda will help to create revenue to bring projects that can benefit residents in the city of which the majority are poor.
Taxing soda drinks to Support free Kindergarten will be beneficial to most people, especially the poor, to take their children to Kindergarten. According to Kenney, the profit collected will be taken back to the neighborhoods, which are the biggest customers of soda companies to improve their lives and opportunities. However, after the imposition of tax on soda drinks, the producers will be the losers in the short run, this means there will be a surplus and having a surplus in a market shows that the market is not efficient. Also, there will be no more consumer surplus because the prices will have been raised, and fewer people will be able to buy the drink. To add to this, producer surplus will also be very low because the market will not be that efficient in the short run. In the long run, consumers will likely resume buying the drink, and the producers will receive a surplus, but the consumers will not get the surplus because the prices will have been increased, which is disadvantageous to them.