Want a soda? This will cost you more in Philadelphia, because politicians there voted to tax them. The politicians said the tax will fund early childhood education.
But store owners say, “it’s a bad tax.” Melvin Robinson, who runs Bruno’s Pizza says the soda tax is killing his business. Instead of buying at Bruno’s they cross the street, because Bruno’s is located right on the outer edge of Philly. His customers just cross the street to save a buck. They come here for the pizza but the soda tax still punishes Melvin. This happens whenever local governments impose special new taxes. If customers can escape, they will.
City Councilman William Greenlee says Philadelphia needs the tax money. “Nothing else that we could come up with could raise that kind of that kind of funding.”
But soda taxes were disproportionately paid by poor people. Even so-called progressives campaigned against this tax. It hits the poor most. Even Bernie Sanders opposes this tax.
“I didn’t know Bernie opposed it, but okay. Remember we’re raising enough money to put 2,700 kids in Pre-K and to open 11 community schools,” Greenlee says.
The pizza parlor’s customers didn’t think their taxes were being well-spent. The mayor says he’s helping people. Meanwhile, taxes create unintended consequences. Soda sales are way down, but sales of more harmful products are up. Now some people are buying a little more liquor–less coke, more liquor!
Politicians love taxes on unhealthy things and so do the media. They applauded when Denmark taxed fatty food. But Danes just cross the border to shop at another country. Within a year, Denmark repealed its “fat tax.”
But Philadelphia isn’t repealing anything. People in this town already pay 44 taxes: state income tax, sales tax, cigarette and alcohol taxes. Philadelphia has a very high income tax compared to other places. How can you not have enough money? You’re rolling in money! $4 million for the “Office of Arts and Culture” which funded two sessions of dance instruction, teaches youth empowerment, social issues through hip-hop. They’re funding the arts, but politicians says we still got to raise money.
The politicians always want more, and the restaurants they just have to pay.
