Plastic Bags Banned?

Plastic Bags, Good or Bad?

The tax on single-use disposable bags in Washington D.C. is proving to be very effective, almost too effective. The tax is bringing in far less money than expected. Since January, District residents have been charged 5 cents for each disposable bag they use at the grocery store or local market. Four cents of the tax goes to the city, while the retailer keeps the rest.

The latest data shows that the city collected just over $1.3 million in revenue from the tax through September. This number falls far short of the official $3.6 million estimate. This is because the number of bags being used by consumers has fallen off the chart.

The use of bags by shoppers at grocery stores is down by 50%, according to an informal survey conducted by the office of Councilman Tommy Wells. Some big name grocers like Giant, Safeway and Harris Teeter have reported that bag use by their customers has fallen by 60%. Although this does affect taxes and retailers, it prevents plastic waste.

http://money.cnn.com/2010/10/04/news/economy/DC_bag_tax/?npt=NP1