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[NewJerichoMan]

Philly Soda Tax is Failing

https://taxfoundation.org/philadelphia-soda-tax-failing/

I think is slanted in the direction of anti-taxation (who is pro taxation?) but does bring up some decent points throughout the article.

Key Findings

Philadelphia’s beverage excise tax is 1.5 cents per ounce, which is 24 times the Pennsylvania excise tax rate on beer.

The high tax rate on nonalcoholic beverages makes them more expensive than beer in some cases. Prior research on soda taxes suggests they are likely to drive consumers to more alcoholic beverage consumption.

Philadelphia’s beverage tax applies to diet beverages, despite those beverages having no impact on caloric intake.

Beverage tax collections were originally promoted as a vehicle to raise funds for prekindergarten education, but in practice Philadelphia awards just 49 percent of the soda tax revenues to local pre-K programs.

Soda tax revenues are likely below expectations due to consumer mobility. Some soda consumers may drive out of town to buy groceries, rather than pay the higher taxes.

Poor revenue performance of Philadelphia’s beverage tax threatens the sustainability of the programs it funds.