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Home / Business / BACKFIRE: Philadelphia has introduced the soda tax, but it did not go as planned

BACKFIRE: Philadelphia has introduced the soda tax, but it did not go as planned



The citizens of Philadelphia were shaken by a tax on sugary drinks such as soda, though the hike should improve their health.

As Hotair pointed out on Saturday, the "soda-tax" has actually led to residents of Philadelphia traveling outside the city to buy their soda (and probably other goods) reduced the city's revenue and led to layoffs in the city local beverage industry and shorter hours for employees in small markets. However, it did not lead to an increase in healthier beverage purchases in the city.

When the Sodasteuer was first announced, the workers at Pepsi were affected. "Pepsi announced Wednesday that 80 to 100 employees will be fired from three sales offices in the city, as sales have declined due to the new tax on sweetened beverages in Philadelphia," said philly.com in March 201

7.

And last The local point of sale reported that the owner of Acme Markets, which has 16 stores in Philadelphia, was forced to reduce his employees' working hours due to the tax: "The beverage tax fell to about 4,000 items. In the shops of the city of Acme, soda sales fell by up to 80 percent. Sales of other taxable products, such as juices, creams and energy drinks, fell 30 percent and customer numbers were down 5 percent. In Philly's stores, on average 150 to 200 hours per week were reduced, resulting in lower salary payments for employees.

However, employee success did not translate into "citizens' health." Hotair noted that residents of Philadelphia traveled outside of the city to avoid tax increases on their drinks.

A CNN report on A JAMA study focused on the city's 51% decline in soda purchases, however, acknowledged: "While researchers found that, sales of sugar-containing beverages in Philadelphia declined after deduction of tax, sales of beverages in This is an indication that people were traveling to get their soda at a discounted price. "

in the city (and, no doubt, in many other grocery items) and decided to go shopping where prices were lower, "Hotair said.

So it was time least an increase in healthier beverage purchases due to the tax? No. Philadelphia di No increase in sales of untaxed beverages such as bottled water. "CNN reported.

CNN did not discuss the revenue that Philadelphia scored, but Hotair: "The tax on soda rose 17%, but sales fell 51%. So suppose that one million ounces of soda was sold each year before the tax came into force. If sales remained the same, the city would have achieved sales of $ 62,400 instead of $ 54,300. However, by halving the volume, they managed to reduce their revenues to $ 31,200. "


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