Yesterday, NTU, on behalf of its members in Philadelphia, Pennsylvania, sent a letter to the Philadelphia City Council, urging them to reject Mayor Michael Nutter's proposal to tax soda. NTU also opposed other proposals to increase the property and tobacco taxes. The letter stated:
"A tax hike on soda would further burden Philadelphia’s poorest residents as they weather this recession. Since poor families tend to consume more soda, a tax increase aimed at this product will hit the poor hardest. A tax as little as 1/2 or 3/4 cents per ounce would increase the cost of a 64-ounce bottle of Coke or Pepsi about 32 to 48 cents, a substantial sum for a family living on a budget. In the midst of this recession, poor families in neighborhoods like West Philadelphia can ill afford higher costs for their groceries."
"And while some see tobacco as an easy target for taxation, the reality is that tobacco tax hikes are likewise very burdensome to the poor, who are most likely to smoke, and they rarely produce the promised revenue. Further, any property tax hike would increase the cost of living for all homeowners. Since Philadelphians already live in the most heavily taxed city in the country, raising the property tax will be painful and likely drive residents from the city to the less costly surrounding areas."
"It should be noted that the proposed tax hikes will inflict themselves on convenience stores, restaurants, and other small businesses as well, as beverages and tobacco products comprise a substantial portion of their sales. Forcing their prices up in comparison to products offered in neighboring states and counties will likely lead to more cross-border shopping, harming businesses and providing unreliable revenue estimates. With fewer sales, the prospect of crippling job losses increases."
While the City Council approved the property and tobacco tax hikes, the Council wisely rejected the soda tax proposal. Rest assured, NTU will continue to fight against these and other tax hikes in Philadelphia, Pennsylvania, and across the country.