The Philadelphia City Council passed a tax on sugary beverages Thursday, becoming the first major USA city to approve this type of levy. It will be levied on distributors and could raise prices by 25% to 30% if passed along fully to consumers.
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Previously, only Berkeley of California passed a similar soda law in November 2014 with a 1-cent-per-ounce tax on soft drinks. It is also broader than the Berkeley ordinance, which exempted drinks with noncaloric sweeteners.
“The government shouldn’t be focused on demonizing certain products”, the American Beverage Association said in a statement released after the vote.
“The tax passed today is a regressive tax that unfairly singles out beverages, including low-and no-calorie choices”, the American Beverage Association said a statement.
“When the government and public health officials rely on a tax as a solution to addressing obesity they are sending the message to consumers that elimination of one ingredient or one product will solve their health issues”. Actually, Philadelphia City Council gave final approval to a 1.5 cent-per-ounce tax on sugary and diet beverages. A six-pack of 16-ounce bottles would go up $1.44.
Michael Bloomberg’s dream is alive in Philadelphia: The Pennsylvania city just became the first major one in the nation to enact a tax on sodas.
A tax on soda has been talked about for years here in MA, but Philadelphia is now making it a reality. Volumes fell 1.2% in 2015, the 11th straight yearly decline, according to industry tracker Beverage Digest. There’s also evidence that artificial sweeteners may make you want to eat more candies. “The goal of imposing this 3-cents-an-ounce sugar-sweetened beverage tax is to allow people to get their kids educated and move them out of poverty into taxpaying citizens”.
Dr. Tom Frieden, director for the Centers for Disease Control and Prevention, had attempted to pass a similar levy when he was health commissioner for New York City, saying research showed it could reduce sugar intake.
Councilwoman At-Large Blondell Reynolds Brown’s container tax proposal would hit beverages similarly, slapping every beverage – even bottled water – with a 15-cent-per-container tax.
Beverage businesses argue sales will go down and jobs will be lost.
Most of rejections of proposals to tax soda came at the hands of state legislatures, where lobbyists might influence individual members.
Mayor Jim Kenney called it a start to “changing the narrative of poverty in our city”. They spent a long time twisting the facts in this whole debate on television, spending millions of dollars (on ads) and that wasn’t effective.
The city’s goal is to maintain a balance of 6 percent to 8 percent of its general-fund expenditures, and the extra revenue from the tax would help reach that mark.
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The city will begin collecting the tax on January 1.
