Philadelphia's tax on sugary drinks has made soda more expensive than beer in the city.
The Tax Foundation released a new study on the excise tax last week, finding that the 1.5-cent per ounce tax has fallen short of revenue projections, cost jobs, and has forced some Philadelphians to drive outside the city to buy groceries.
The study finds that the tax is 24 times higher than the Pennsylvania tax rate on beer.
"Purchases of beer are also now less expensive than nonalcoholic beverages subject to the tax in the city," according to the study, written by Courtney Shupert and Scott Drenkard. "Empirical evidence from a 2012 journal article suggests that soda taxes can push consumers to alcohol, meaning it is likely the case that consumers are switching to alcoholic beverages as a result of the tax. The paper, aptly titled From Coke to Coors, further shows that switching from soda to beer increases total caloric intake, even as soda taxes are generally aimed at caloric reduction."
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6 comments:
Stupid law and stupid legislators to have put it in place.
Md did the same with beer and cigs...buy all mine in del or va..
Local governments must think customers (constituents) are really dumb. Tax your base...attempt to tax your base for more revenue and what do they do? Go to where its cheaper of course! Mentioned above about MD cigs/booze - go to there states. Blue hairs up north (NY, RI, NJ, MASS, et al) when traveling south for the winter stock up when returning for many belongings (cigs, booze, clothes) from southern states because its cheaper! Folks like a deal, even if they think they are getting a deal. Now if cigs in MD are 7-8 a pack and I know I can get them for 5 or 6 in VA (down route 13) or DEL north, I'm going there - not to mention booze!
Silly local governments, we are smarter and not STUPID to run for politico office either!!!
It isn't just soda, folks.
"The sugary-beverages tax approved by Council adds 1.5 cents per ounce to the cost of most drinks with a sugar-based sweetener or artificial sugar substitute. The tax took effect Jan. 1.
Some beverages are exempt, including baby formula; products that contain more than 50 percent milk, fresh fruit, or vegetables; and unsweetened drinks to which the buyer adds sugar, or requests that the seller adds sugar."
It includes things like sports drinks, energy drinks, sweetened teas, etc.
Will that stop the murders?
I was stationed in Germany way back in the seventies and beer was cheaper than colas over there back then. Given a choice, we always chose beer to go with our meals.
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