Philadelphia Soda Tax

A recentNew York Timesarticle reports that today ’s Democratic primary in Philadelphia partially represents a referendum on the city’s soda tax, even though it is not on the ballot. Incumbent Mayor Jim Kenney, the engineer of the 1.5 cents per ounce tax on sugary and artificially sweetened beverages which took effect in 2017, is facing two Dem ocratic challengers who both support repealing the controversial tax.Since its inception, the tax has faced vigorous opposition from a coalition of the beverage industry, grocery store owners, and Teamsters, as well as citizens and politicians who worried that it would unfairly burden the poor. Supporters have touted the tax ’s revenue-raising potential and the public health benefits of taxing soda in a city with some of the highest obesity and Type 2 diabetes rates in the United States.Kenney has always presented the tax as a revenue-raising measure and he reports that it has raised $200 million for education and infrastructure programs. While Kenney ’s stated goal was never to change soda drinking behavior, many supporters of the tax have focused on the potential health benefits and studies have found mixed results of its impact on soda consumption in the city. From an economic standpoint there are, among others, three serious concerns about the tax’s ability to both raise revenue and reduce obesity.First, as Idiscussed in 2016 shortly after it was passed, both the level and scope of the tax mean it has a dubious impact on r...

Source: Cato-at-liberty - May 21, 2019 Category: American Health Authors: Peter Van Doren Source Type: blogs