Government Affairs: A Taxing Situation for the Poor?

Thu., March 3, 2016 Uncategorized

BY E. PLURIBUS UNUM

Philadelphia Mayor Jim Kenney’s decision to tax soda and sugary drinks at three cents per ounce to expand preschool education, rehabilitate parks and recreation centers, fund green jobs and help plug an obscene pension gap is actually regressive and disproportionately hurts lower income Philadelphians, according to at least one researcher.

Mark Dent writes on BillyPenn.com that Carl Davis, the research director at the Institute on Taxation and Economic Policy, believes the levy is “an imperfect tax.”

The Kenney Administration says the Mayor is simply looking for new funding for programs citizens want and need.

Opponents of the tax argue it is self-defeating.  If the price of soda is higher, it may force more people to stop buying it, thereby reducing the funding stream. And even though it is a tax levied on distributors, the increase will be passed onto the consumer, they say.

Larry Ceisler, one of the region’s best public relations and marketing gurus who is working on behalf of a coalition to defeat the tax proposal, said initial research indicates this may be the highest soda tax proposal ever. Berkeley, California is the only American city to tax soda at a penny per ounce.

On Talk Radio 1210, he cited former GNPCC President Al Taubenberger’s staunch opposition to Mayor Michael Nutter’s attempt to tax soda. Mr. Taubenberger is now a City Councilman, and Larry made it clear he’s hoping Al will oppose it again. We’ll keep an eye on this.

Always remember: Out of many, one.

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