Memorial University’s Faculty of Business professor, Tom Cooper, studied the economic effects of a tax and concluded, “The implications to business and the economy with the implementation of the tax will be significant with risks emerging around:
- human resources reduction (e.g., layoffs),
- business model feasibility (e.g., some businesses shutting down),
- logistics (e.g., shipments to smaller rural communities)
- as well as significant compliance and operational costs.
There is also the potential for a ‘doom loop’ to the soft drink manufacturing and distributing industry – a feedback loop which means each action makes the situation worse for the industry – leading to even more risk for the overall Newfoundland and Labrador economy.”
Read the full report here:
CBA – Final Report – Sugar-Sweetened Beverage Proposed Tax – Business and Economic Implications