BY E. PLURIBUS UNUM
Things are getting sticky between Big Soda and the Kenney Administration over the Mayor’s proposal to impose a record tax on sugary drinks in order to fund a number of worthwhile initiatives. An economist hired by the American Beverage Association found that about 20 percent of the city’s total sugary drink sales come from fountains, and the syrup used here would be taxed at a whopping 27 cents per ounce. (Bottled drinks would be taxed at 3 cents per ounce).
So, what does this mean, you ask?
The proposed tax could add 36 cents to a 12-ounce can of soda, and 54 cents to a 12-ounce cup of fountain soda.
“Foul!” cries Big Soda.
“Hold on!” replies the Kenney Administration.
The Mayor’s Office says they were not caught flatfooted by the economist’s examination. Rather, they simply didn’t use those fountain soda revenue projections in their calculations because they wanted to be “appropriately conservative.” Also sounds like they are willing to discuss the fountain soda numbers.
The city believes the tax will generate $400 million over five years, and would go a long way to improving school buildings, parks, recreation centers, libraries and police districts, help to fund pre-kindergarten education (a major goal for Mr. Kenney), and toss about $26 million toward the city’s $5 billion pension gap. (That hurts just to type it!).
Hearings in Philadelphia City Council, which promise to be—in the words of the late, great Gene Hart—“wild and wooly” are expected to begin soon.
Always remember: Out of many, one.