Pepsi Beverages Co. (PBC) will end production at its beverage plant in Baltimore, Md., resulting in around 75 job losses in the city, according to www.drinks-business-review.com. The company noted that this decision was made partly owing to a controversial new 2-cent beverage tax in Baltimore.
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Editor's Insight: While the beverage tax wasn't the only factor in Pepsi's decision to stop production at this facility, this news should serve as a warning to lawmakers everywhere that taxes not only threaten people's jobs, but can ultimately be self defeating.
The purpose of the tax was to raise revenue, but by killing jobs, the tax will reduce revenue from lost payroll taxes. 01-11-10 Elliot Maras