Philadelphia Passes “Soda Tax,” Then The Inevitable Happens

Philadelphia Passes Soda Tax Then The Inevitable Happens

Last summer, Philadelphia decided to make the foolish choice to become the first U.S. city to pass a tax on soda. While leftists tried to sell the farce that this tax would be great for budget deficits, the inevitable instead happened — high prices, declining sales, and people set to be out of work.

Zero Hedge reported:

Then, one month ago, after the tax went into effect on January 1st we showed the tax applied in practice: a receipt for a 10 pack of flavored water carried a 51% beverage tax. And since  PA has a sales tax of 6% and Philly already charges another 2%, the total sales tax was 8%. In other words, a purchase which until last year came to $6.47 had overnight become $9.75.

According to reports, two months into the city’s sweetened-beverage tax, supermarkets and distributors are reporting a 30% to 50% drop in beverage sales and – adding insult to injury – are now planning for layoffs.

One of the city’s largest distributors told the Philadelphia website it would cut 20% of its workforce in March, and an owner of six ShopRite stores in Philadelphia says he expects to shed 300 workers this spring. “People are seeing sales decline larger than anything they’ve seen up to this point in the city,” said Alex Baloga, vice president of external relations at the Pennsylvania Food Merchants Association.

Despite the cold, hard numbers, the city doubled down on their failed plan to exert more control over the people.

“We have no way of knowing if their sales figures and predicted job losses are anything more than fear-mongering to prevent this from happening in other cities,” city spokesman Mike Dunn said.

“I didn’t think it was possible for the soda industry to be any greedier,” Mayor Kenney said in an emailed statement.

“…They are so committed to stopping this tax from spreading to other cities, that they are not only passing the tax they should be paying onto their customer, they are actually willing to threaten working men and women’s jobs rather than marginally reduce their seven figure bonuses.”

“People didn’t change what they drink,” Jeff Brown, CEO of Brown’s Super Stores, said. “They changed where they’re buying it.”

Surely, that will be the next move made by leftists hell-bent on having the government control every facet of our lives.

Eventually, they will use the fear-mongering they’ve put in place over the years about certain foods and beverages and cite cases like this in their reasoning as to why big government needs to step in and save all Americans from their inability to make the choices they say we should make.

That is precisely why Americans need to be very careful any time the government wants to get their power-hungry hands into something — even if they are things that you might personally agree with. It is almost never about the issue at hand and they more often than not use it simply to exert more control.

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Read More:

The Associated Press: Industry: Philadelphia soda tax killing sales, layoffs loom

Philadelphia magazine: Soda Tax’s Early Impact: Sales Drops, Layoffs, and Lagging Tax Revenue

The Washington Times: Philadelphia soda tax fizzles in first month, layoffs likely: Reports