The Tax Bite
on Everyday Products….SODA

In most states, the consumer must pay sales tax on the soda averaging about 5 percent. In some states and cities, the consumer must pay an additional beverage container tax or excise tax averaging around 4 percent.

But that is just the beginning. Out of the amount the consumer pays to the producer, the producer must pay federal income taxes, state income taxes, federal payroll taxes, unemployment insurance taxes, workmen’s compensation taxes, local property taxes and any local income taxes.

Altogether, these taxes average about 30 percent of the price of a can of soda. Counting the taxes paid directly by the consumer, this means about 35 percent or more of what you pay for soda goes to the government in taxes rather than for the soda.

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