August 8, 2017
A Philadelphia tax on sugary drinks now makes buying soda more expensive than beer.
The city’s beverage tax is at 1.5 cents per ounce on non-alcoholic sugary drinks, which is 24 times higher than the state’s tax rate on beer.
It was originally promoted as a method to raise funding for pre-kindergarten education when it was implemented in January.
However, less than half of the near $40 million collected so far has gone toward pre-k programs.
Tax avoidance has caused revenue to fall below the projected $92 million per year, and that’s not the only numbers coming up short.
Companies like Coca-Cola and Pepsi are seeing a decline in profit in Philadelphia, and low-come customers are also being weighed down by the additional tax.