Posted on 09/14/2023 9:18:32 AM PDT by nickcarraway
The city wanted to bring in more money, in part for early childhood education. But such taxes are disproportionately paid by the poor.
Want a soda? You'll pay more for one in Philadelphia, because five years ago, local politicians decided to tax it.
They're "protecting" people, they said. The tax would "reduce obesity" and "lower diabetes rates."
But their main goal was to bring in 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 updates what happened.
Store owners hated the new tax.
"Bad tax!" said Melvin Robinson, who runs Bruno's Pizza. He says few customers now buy soda from him.
One of his customers told me, "I refuse to buy soda in Philadelphia."
"Twenty-ounce soda, almost $3!" complained another.
Bruno's is located right on the outer edge of Philadelphia, so his customers can cross the street and buy untaxed soda.
But they still go back to Bruno's for pizza. "Best slice in town!" gushed one.
I confronted then–City Councilman William Greenlee with the store owners' complaints.
"Nothing else that we could come up with could 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 child care on the backs of the poorest people!… That's a regressive way."
"It hits the poor most," I repeat to Greenlee.
"I didn't know Bernie opposed it," he laughed. "We're raising enough money to put 2,700 kids in pre-K and to open 11 community schools!"
"Preschool?!?" snarled a Bruno's customer. "I doubt that."
As with most taxes, the soda tax had an unintended consequence: Alcohol sales rose 5 percent.
"People buy more liquor," I shout at Greenlee. "Less Coke, more liquor!"
Greenlee laughs and says, "We have a liquor tax, too!"
Politicians do like their "sin" taxes.
Denmark passed one on saturated fat but quickly repealed it when Danes crossed the border to shop in other countries.
But Philadelphia isn't repealing anything.
People who live there already pay 44 taxes, including a higher income tax than other cities impose.
"You should be rolling in money," I say to Greenlee.
"I don't know about that," he replies. "There's a lot to do out there."
Politicians like to do "a lot" with other people's money. Philadelphia spent $4 million of the soda tax money on an office of arts and culture, and hip-hop dance instruction that teaches "youth empowerment."
When I scoffed at that, Greenlee said, "The office of arts and culture does a very good job."
Bruno's customers aren't convinced. "Like we need that!" exclaims Robinson, sarcastically. "People are trying to live!"
I told him that the politicians said they need more money.
"Stop stealing!" he responds.
I don't know that Philadelphia politicians steal, but councilmembers make $121,000 a year, three times the local median income.
"I don't think that's terribly unusual for elected officials," Greenlee says.
Sadly, he's right.
Five years later, Greenlee is no longer in government. Restaurant owner Robinson still sells pizza. He survived the soda tax.
Philadelphia did use some of the soda tax money to open preschools. Whether the schools are well-run—or just waste—I don't know.
Most of the tax money did not go for education. Most was just dumped into the city's general fund.
Now the politicians spend it on whatever they want.
And America’s average I.Q. continues to fall with every new tax the RAT politicians come up with.
Maybe they should try taxing actual sins. Theft, adultery, use or possession of graven images.
I remember the discussions here at FR when the tax was passed. We correctly predicted that people would change their buying habits (but not consuming habits) accordingly. Yes, some (mainly those on SNAP benefits) wouldn’t care or notice, but enough consumers would take note and travel to outside the tax zone to stock up on their favorite drinks, that the soda tax would not reduce the amount consumed nor increase the amount of tax collected.
I remember that discussion—none of us thought it would increase alcohol consumption—lol.
That is the classic example of why central planning is a disaster—consumer preferences are very difficult to predict.
pre-school.. government run free day care. I know first hand of people who have enrolled their kids in preschool just so they didnt have to pay child care while mom and dad work. They are not fans of summer vacation either because of the “ burden” of raising their own children. shm, disgusting.
Taxing adultery? That will certainly make the job of auditor more interesting.
“You don’t have to fund child care on the backs of the poorest people!… That’s a regressive way.”
Deficit spending is even more regressive than this tax, but Bernie doesn’t seem to mind. He embraces it, in fact.
I remember the discussions here at FR when the tax was passed
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I do too. Illinois has had that tax since 2011.
And yet the residents of Philadelphia will proudly tell you how they’ve always voted for Democrats all their lives and their whole family too!
You just can’t fix stupid.
Most of the tax money did not go for education. Most was just dumped into the city’s general fund.
If this tax was used to fund these education endeavors, it just leaves the other money from the tax roles to spend on other things. Government leaders should be setting priorities and determining if they can afford those priorities. Where the money comes from should not matter.
Pre covid, Portland Maine made buco bucks a parking meters and parking garages. That money just goes into the general fund and government leaders make parking management decisions based on other factors. (We are getting back to pre covid levels on mostno-property tax revenue sources).
As an aside, the motorcycle purchase also dodged CA taxes. I purchased it as an Idaho resident and the VIN was recorded for the first time in Idaho where I paid a significantly lower sales tax and registration fee. It was handled as a dealer to dealer transfer of a newly imported motorcycle.
This is inaccurate. It was sold as being ALL for early childhood education, which was a lie of course.
If that’s the bruno’s on cheltenham ave, north philly. I know a guy who was shot in the back there many years ago. crippled for life. As was the intent. He was a student at Tyler Art school.
I spend some time in Philadelphia for work. I make it a point to not spend any money there whenever possible.
They'll snatch money wherever they can...
I fled Philadelphia in 1982. I have zero in common with these people.
Reminiscent of Bloomberg’s attempt to outlaw soft drinks greater than 16 oz. At least he didn’t try to tax them.
yes, I remember Mayor Bloomberg wanting to ban the big gulp type drinks. Some of these politicians have some crazy ideas.
That just sets up failure to achieve anything. If you ban large size drinks, people will just buy more smaller sized drinks. It’s foolish to even try to do that sort of thing.
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