It was recently reported that the 1.5 cents-per-ounce beverage tax in Philadelphia is now $20 million short of its $46 million goal for the 2017 fiscal year which ends June 30. As a result, Philly.com columnist Stu Bykofsky explains why he worries for what will happen next.
“Is it too early to ask what will happen if soda sales keep dropping and not enough is generated for the goodies in the Kenney grab bag?” Says Bykofsky, who fears what the Kenney administration might tax next, including, “soft pretzels? Cheesesteaks? Tastykakes? Water ice? Scrapple?”
The tax is generating significantly less revenue than expected which highlights the undeniable flaws in a failed tax that is not a sustainable source of revenue for the city. Instead, the tax is "falling hardest on small retailers and the lower classes," says Bykofsky.
Experience tells us there are no upsides to job-killing taxes that target small business owners and low-income working families. To learn more about the negative consequences of beverage taxes, visit The Truth About Beverage Taxes.