Facts, Not Hysteria, About the Soda Tax

Originally published by the Philadelphia Business Journal on April 20, 2017. Also at Third and State.  Co-authored by Diana Polson. The reaction of the beverage industry to the Philadelphia soda tax continues to be self-centered, hysterical, and dubious. Before looking at their claims, let’s keep in mind something very important: every tax has some negative consequences for some businesses. And, yes, it is a shame if some business absorbs some costs and a few people lose jobs as a result. But public policy has to be driven by the consequences for all of us. So, the question is not whether an individual business is hurt by the Philadelphia soda tax, but whether the city and its citizens benefit on the whole. We think the answer is clearly yes, not just because of the investment in Pre-K education and community recreation centers made possible by this tax, but because of the … Continue reading

Why Philly Needs the Sugary Drink Tax

Originally appeared on the Third and State Blog on May 25, 2016 As we move closer to a City Council vote on the sugary drink tax proposal, I want to offer some final thoughts about the idea and correct some misapprehensions about it: 1.While the tax itself is regressive, and the Pennsylvania Budget and Policy Center almost always opposes regressive taxation, the program as a whole is not regressive. To begin with, the opponents of the tax are simply wrong about one aspect of it. They have been arguing that it is doubly regressive because members of low-income families consume sugary drinks at higher rates than middle- and high-income families or that African-Americans drink sugary drinks at higher rates than white people (and keep in mind that these are two groups not one). Those are myths. The research on this issue is equivocal and does not support that claim. 2. … Continue reading

Those Feeling the Brunt of the Soda Tax Will Also Feel Benefits

Originally published as Those feeling brunt of soda tax will also feel benefits, Philadelphia Daily News, April 19, 2016 THE SUGARY-DRINK tax proposed by Mayor Kenney, also known as the “soda tax,” is controversial because it takes a greater share of the income from poor families than rich ones. And since we at the Pennsylvania Budget and Policy Center are fundamentally committed to economic justice, we are always inclined to be suspicious of taxes that do that. So it may come as a surprise that we have concluded, overall, that the sugary-drink tax proposed by the mayor is a good idea. Though the costs fall more heavily on those with low incomes, for two reasons, more of the benefit of the tax will go to low-income Philadelphians, as well. The first benefit of the tax flows from how the new revenue will be spent – on pre-K education, community schools, and … Continue reading