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.”
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