Would you like a soft drink? In Philadelphia you pay more for it because local politicians decided to tax it five years ago.
They ‘protect’ people, they said. The tax would “reduce obesity” and “lower diabetes rates.”
But their main goal was to raise more money, which they said would “fund early childhood education” and “help a lot of families.”
I reported on this five years ago, right after the tax went into effect.
My new video provides an update on what happened.
Store owners hated the new tax.
“Bad tax!” said Melvin Robinson, who runs Bruno’s Pizza. He says few customers buy soft drinks from him now.
One of his customers told me, “I refuse to buy soda in Philadelphia.”
“Twenty ounces of soda, almost $3!” complained another.
Bruno’s is located right on the outskirts of Philadelphia, so its customers can walk across the street and buy tax-free soft drinks.
But they still go back to Bruno’s for pizza. “Best piece in town!” one gushed.
I confronted then-city councilman William Greenlee about the store owners’ complaints.
“Nothing else we could think of would raise that kind of funding,” he said.
Soda taxes are disproportionately paid by poor people. Even Sen. Bernie Sanders (I-Vt.) said, “You don’t have to fund childcare on the backs of the poorest people!… That’s a regressive way.”
“It affects the poor the most,” I repeat to Greenlee.
“I didn’t know Bernie was against that,” he laughed. “We are raising enough money to place 2,700 children in nursery education and to open 11 community schools!”
“Toddler?!” snapped one of Bruno’s customers. “I doubt that.”
Like most taxes, the soda tax had an unintended consequence: alcohol sales increased by 5 percent.
“People are buying more booze,” I shout to Greenlee. “Less coke, more booze!”
Greenlee laughs and says, “We have a liquor tax too!”
Politicians like their ‘sin taxes’.
Denmark passed a law on saturated fat, but quickly repealed it as Danes crossed the border to shop in other countries.
But Philadelphia isn’t retracting anything.
People who live there already pay 44 taxes, including a higher income tax than other cities impose.
“You should throw in some money,” I tell Greenlee.
“I don’t know,” he answers. “There’s a lot to do out there.”
Politicians like to do ‘a lot’ with other people’s money. Philadelphia spent $4 million of its soda tax money on an arts and culture agency and hip-hop dance education that teaches “youth empowerment.”
When I scoffed at that, Greenlee said, “The arts and culture office does a really good job.”
Bruno’s customers are not convinced. “As if we need that!” Robinson exclaims sarcastically. “People are trying to live!”
I told him that the politicians said they needed more money.
“Stop stealing!” he answers.
I don’t know if politicians in Philadelphia steal, but council members make $121,000 a year, three times the local median income.
“I don’t think this is very unusual for elected officials,” Greenlee said.
Unfortunately he is right.
Five years later, Greenlee is no longer in government. Restaurant owner Robinson still sells pizza. He survived the soda tax.
Philadelphia used some of its soda tax money to open preschools. Whether the schools are well run – or just a waste – I don’t know.
Most of the tax money did not go to education. Most of it was simply dumped into the city’s general fund.
Now the politicians spend it on whatever they want.
COPYRIGHT 2023 BY JFS PRODUCTIONS INC.