| Arguments Against Soda Tax are All Flat
In response to a 2015 landslide voter referendum in support of a tax on sweetened beverages, the Mayor and City Council passed the levy that pays for more than 5,000 children to attend pre-k, completed upgrades to 48 city recreation centers, parks, and libraries, and operates 20 community schools serving 10,000 students.
Despite the high praise that these achievements get from citizens and City Councilmembers alike, Councilmember Jim Harrity is risking these extraordinary investments in children by reopening a debate that ended over a decade ago on a tax that funds irreplaceable programs.
The Council resolution for this hearing peddles tired, unproven economic claims by giant conglomerates that own nearly every supermarket in the country, and mega-corporations like Pepsi and Coke that sell beverages around the world. Yet extensive research finds no evidence of a negative impact on either retailers or beverage companies.
Missing from the council resolution are the facts that retailers of all sorts have long bilked Philadelphians, hiking the cost of sweetened beverages by more than the price of the tax and jacking up the price on unsweetened drinks at the same rate even though they were not subject to the tax.
An analysis of two million sweetened beverage purchases in Philadelphia across supermarkets, chain pharmacies, and corner stores found that cost of sweetened beverages exceeded the amount of the tax by an average 13%, and for the most popular sugary drinks, the upcharge was 33% or more. Philadelphians subjected to wild claims by the opponents of the tax should keep in mind that since retailers doctored sweetened beverage prices above the cost of the new tax, it’s impossible to draw any conclusions about the impact of the tax on beverage sales.
Also noteworthy are studies by respected independent researchers that found beverage sales in Philadelphia were unaffected by the tax, and the same for employment in food delivery, bottling, and related beverage sectors.
These facts, if they can make it into the council debate, certainly undermine any argument that the soda tax hurt retail beverage purveyors in Philadelphia.
To be sure, the deep-pocketed lobbyists who want to repeal the tax are also unlikely to point out the positive effect the soda tax has on employment. In the early childhood sector alone, 1,200 new permanent jobs were created across more than 200 pre-k programs. In fact, thousands of low-income parents with small children report that they can go to work, pay their rent, and purchase basic necessities because their children attend free PHLpreK.
Nearly 60% of parents indicated that access to free pre-k permitted them to work longer or different hours, according to annual survey of parents with children in PHLpreK. Without the soda tax, work would be out of their reach since pre-k costs more than the tuition at public colleges.
Given all this, it’s hard to grasp the rationale for the relentless effort by the beverage industry, supermarket magnates, and some unions to repeal the tax.
Philadelphians have demonstrated they are unified against the Trump Administration’s assault on public programs that help children. Unfortunately, now we must also vigorously call out the Philadelphia City Council Committee on Labor and Civil Service for doing the bidding of private industry and eroding the agreement reached long ago to enact this tax to make lives of Philadelphia’s children better.
Before Monday’s hearing airs opponents’ deceptive claims, contact your Councilmembers and tell them not to “fix” something that’s not broken. Our kids are worth it.
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