Philadelphia residents up in arms over soda tax hit


Philadelphia residents up in arms over soda tax hit

http://www.foxnews.com/politics/2017/01/06/philadelphia-residents-up-in-arms-over-soda-tax-hit.html

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Philadelphia residents are getting hit by the first big-city soda tax in the country, and they’re not happy. Pictures are going viral of hefty receipts that show the 1.5 cent-per-ounce tax adding up to several dollars extra on a single purchase.

“The magnitude of this tax is historic and Philadelphian consumers can’t afford it,” said David McCorkle, CEO of the Pennsylvania Food Merchants Association. 

When the levy was approved last year, Philadelphia became the largest city in the nation to create a specific tax for soda and sugary beverages. The tax took effect on Jan. 1, with a per-ounce rate 24 times more expensive than the state’s tax on beer.

The 1.5 cent-per-ounce rate sounds small. But it can add up on purchases of packs and large bottles.

In one photo that went viral after being posted to Facebook, a receipt shows more than $3 in tax added to the cost of a $5.99 12-pack of Propel, an energy drink. Because of the broad language, the tax captures not only sodas but energy drinks, zero-calorie diet beverages, juice and even milk substitutes for lactose-intolerant people.  

 

Other shoppers also sounded off.

 

Philadelphia Mayor Jim Kenney first proposed the tax in March 2016; it passed the City Council 13-4. The revenue will be used to fund initiatives for areas in need of improvement like community schools, parks, rec centers, and libraries – and for expanding the city’s pre-K programs.

But the city has been in a legal battle with the American Beverage Association, which opposes the measure. And the Kenney administration has gone to the state Supreme Court seeking a final legal decision. A spokesperson for Kenney told FoxNews.com that without the tax, the city cannot fund additional pre-K seats come September – and stressed it’s not technically a sales tax.

“The Philadelphia Beverage Tax is a tax on the distribution of sweetened beverages intended for retail; it is not a sales tax to be paid by the consumer and collected by the retailer,” spokesman Mike Dunn said. “There are thousands of Philadelphians who are thrilled with the infrastructure this tax will pay for, so it depends on who you’re speaking to.”

The mayor’s office said there was no “mandate” on consumers, but rather on dealers and distributors who could choose whether to increase prices.  

“Since it is not a sales tax, distributors … do not have to pass it down to their customers, the dealers,” Dunn said. “They could choose to slightly lessen their seven-figure bonuses, for example.”

But McCorkle, a plaintiff in the case against the tax, said despite what the mayor’s office says, the tax will be passed onto consumers.

“I would ask anyone in the mayor’s office to walk through a supermarket or convenience store—the consumers are seeing a dramatic increase in the price of products in these Philadelphia stores and Philadelphians will vote with their feet by finding a neighboring community where they can buy the products they want at prices they did prior to January 1st,” McCorkle said. “If Philadelphians shop outside the city, sales decline, not only in the beverage category, but in all categories.”

McCorkle said the Philadelphia economy in general could be affected.

“I think the city needs to take a hard look at the potential impact, and we suspect that if store revenue declines, cuts have to be made somewhere,” McCorkle said.

According to the mayor’s office, Philadelphia has established a Healthy Beverages Tax Credit to help those small stores and bodegas McCorkle is concerned about. The credit is offered to “qualifying merchants who increase their inventory of healthy beverages.”

Philadelphia’s experience could shape how the soda tax debate plays out across the country. Illinois is considering a statewide soda tax, and cities including Santa Fe, N.M., are considering new local levies. 

2 Responses

  1. Well stated pops! While I know that soda is not good for me it is one of the very few things that I can keep down and is keeping my weight above100 pounds while doctors won’t even try to figure out what is wrong with me that I can’t eat! The government needs to quit micro managing our lives and do the job they are supposed to be doing!!

  2. Does it look like it’s time to go back to Independence Hall and draft a new Declaration yet?????
    The entire Bureaucracy of, Federal, State and Local government has succeeded in derailing the Ethical Practice in Government Train!!!! THIS SHIT AIN’T ABOUT THE SAFTY OR WELL BEING OF THE PEOPLE OF PHILADELPHIA. It’s all about “TAXATION WITHOUT REPRESENTATION” once again and what our entire government needs is a HUGE HIGH COLONIC.
    Look at it this way. Every elected official was put in office to be the voice, the representative of those who voted to put him or her in office. This means that this person is there to represent your needs and your wishes as a citizen, not the needs and wishes of big business or bureaucratic agencies.
    Now tell me, when the last time that ANY elected official did a single thing for anyone of our benefits as a person elected to represent our needs????
    As Chronic Painers our biggest want, our most valued need is for pain relief. I don’t know about the rest of you but if the consumption of the most vile tasting substance in the world relieved my pain, I would eat it and ask for more.
    If feeling less pain was as simple as changing my diet to nothing but vegetables, I’d grow a garden that would make Whole Foods envious.
    If curing obesity and diabetes was as simple as not drinking soda or sugary drinks, I’d quit drinking them. Which by the way I don’t drink either.
    Outrageously taxing foods, drinks and drugs are not going to stop people from getting disease or even purchasing these things. What it will do is send everyone to the store to buy a Soda Stream soda maker so they can start doing it themselves. Or it will start sending these residents once or twice a month outside the city or across the state line to purchase their soft drink fixes. Then what, bootlegging charges for Sadam pop?
    Just like the whiskey tax of colonial America which created Moonshine, the American people are resourceful and will find a way, and probably more sooner than later, the general population is going to get PISSED and start revolting because their freedoms are being taken away by bureaucratic NUT BAGS.

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