The new mayor of Philadelphia, Jim Kenney, has proposed taxing soda beverages at 3 cents an ounce, which is the highest soda tax proposed anywhere in the country. The idea of taxing soda beverages was first brought up about a decade ago by public health researchers, but has failed in multiple cities and states, including Philadelphia twice already. Public health researchers are attempting to
reduce consumption of soda drinks, which they argue causes
increases in obesity and diabetes in men, woman, and children around the United States. Kenney says that his soda tax could raise more than $400 million over five years, which could fund many popular city projects. Kenney's approach is a lot different than in years past, which lead many to believe that it might just work. Kenney believes that this tax could raise the price of a 20-ounce bottle of soda by 60 cents, just enough to change some consumers minds. Kenney is not promoting the health benefits, but focuses on the large sum of money that the tax will bring in. Large soda producing companies are fighting these efforts and will not give up. This tax could provide sufficient funding for many city projects, as well as cut the consumption of sugary soda beverages, promoting healthier lifestyles.
http://www.nytimes.com/2016/04/04/upshot/making-a-soda-tax-more-politically-palatable.html?ref=economy&_r=0
It is interesting that Kenney's main objective for this tax is to raise revenue for the city, and not for the health benefits of decreased consumption of soda. I wonder how this will end up working out for the city. I am especially curious as to whether it will be perceived differently since its main objective is to raise money for the city and not to control consumers' consumption habits. Consumers may feel that they are getting benefits out of the tax instead of feeling controlled by the government.
ReplyDeleteThis article provides an interesting approach to the way that politicians have to balance the approval of the consumers while also finding the funds to support projects and make a change in society so that their ideas can become a reality. I think that this soda tax, which seems to depart from the normal idea of taxation to prevent the purchase of the product for general health reasons (stop obesity in the population), might have more impact and more helpful results on the rest of society if Kenney is really able to put the funds towards specific programs in the city. I think that Philadelphia will be able to learn from the precedent that Berkley, CA set in 2014 when they were the first to enact a tax like this (but more for health reasons and also other European nations that quickly followed the trend.
ReplyDeleteThis is a great idea from Kennedy. Even though he is not promoting the health benefits, they are still there. This could potentially increase the standard of living in the US while also raising funds for the government.
ReplyDeleteI agree with this new idea from Kenney because it in a way tackles two problems at once. It will probably have positive effects on the health of the city while still having extra money in the budget for other projects to benefit the community. However, as we learned in class, a raise in taxes reduces consumption, which could have some negative implications. I think if they properly address the expected reduction in consumption the policy will work very effectively.
ReplyDeleteI believe that Kenney's soda tax is overall a great idea. It will definitely receive a lot of scrutiny from soda drinkers, but it is a great way to receive tax revenue. There has been a push recently for taxing soda and sugar. Even though Kenney isn't promoting the health benefits of consumers not drinking soda, everyone know that the benefits are there. Soda sales have been declining along with soda drinkers and this could be the start to the end of soda in the U.S.
ReplyDeleteI agree with the comments above how this is a great idea from Kenney. Although I am not completely sure if this tax is primarily to increase the tax revenue or to create a healthier society. If the focus is more geared towards improving personal health, maybe a better solution would be to increase taxes on the consumer for purchasing such beverages. Now if the goal is to raise more funds for government projects, why stop at sugary beverages. They might as well target food products as well that are high in sugar, such as candy.
ReplyDeleteBritain is also introducing a high tax for sugary drinks, not just soda. I think this is a great idea, and I really like how it is happening in the U.S. We have a huge obesity problem and I think although this will not decrease the obesity that much, we will help people to stop drinking soda and we will have money from people that continue to drink soda.
ReplyDeleteI think that that this plan is pretty good because it does raise money and will most likely decrease the amount of soda consumed. but if it is all about health problems are they going to start putting a tax on all non healthy products like tobacco and chips and candy? even though this will raise money I could see it getting out of control.
ReplyDeleteI like this idea a lot, however it is unfortunate for the soda companies. Maybe there is a way to compensate them for this tax, it is a good thing that people will consume less soda. The amount of soda that is consumed by people in the US is insanely high, and maybe the tax could help support medical costs too.
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