The obesity rate in the US, is one of the biggest reasons Philadelphia implemented a tax on soda. The reality is that nearly 70 percent of American adults are overweight. About 35 percent of the US population is obese. These statistics are also starting to have an affect on children as young as three years old.
The result is higher healthcare costs to treat the effects of this unhealthy trend. Many states are now charging higher taxes on things like junk food and soda. Philadelphia is doing this to soft drinks, charging a higher tax in an effort to encourage residents to purchase cheaper, healthier options.
The city of Philadelphia was the first in US to charge an extra tax on soda. The higher tax began at the start of 2017. The tax is 1.5 cents per ounce of soda purchased.
Philadelphia had good intentions on implementing the tax, but there have been some unexpected outcomes from it. The tax has an impact on low income residents of Philadelphia. Someone with a higher income has no problem paying the extra tax or driving out of the city to avoid it. Low income families do not have these options.
The extra tax on soda is also affecting local small businesses or mom and pop stores. These small stores already have to compete with bigger stores with higher advertising budgets, and now they are seeing a decrease in revenue due to the soda tax. There are several effects feom this extra tax. The soda companies are taking a stand against the city of Philadelphia, and the case is making its way to the Supreme Court.
Karl Heideck is an attorney who specializes in litigation, risk management review, and compliance in the city of Philadelphia for over 10 years. Karl Heideck earned an undergraduate degree at Swarthmore Colege in 2003. Soon after, he earned his law degree from Temple University in 2009.
Karl Heideck is also a legal writer and researcher. His over 10 years experience help him become a legal writer. Karl Heideck enjoys helping local busineses with compliance and risk management issues.
To learn more about this law, please see The Future Of Philly’s Soda Tax Discussed By Karl Heideck.