Outrage in Philadelphia as New Soda Tax Doubles Drink Prices

That won’t stop other cities and states from trying to duplicate the dubious policy.

(Eric Boehm, Reason.com) – A new tax on soda and other sugary drinks that took effect in New Year’s Day in Philadelphia is already generating outrage from some residents and businesses in the city.

Meanwhile, in New York and elsewhere, lobbyists and public officials are looking to duplicate the dubious policy.

When it was passed last year, Philadelphia became the largest city in the nation to create a specific tax for soda and sugary beverages, a policy that had previously been contained to progressive enclaves like Berkeley, California. The tax is levied at a rate of 1.5 cents per ounce, which makes it 24 times more expensive than Pennsylvania’s taxes on beer.

Practically, that means that some drinks end up being nearly twice as expensive after the tax is applied, turning $2 sodas into $4 sodas.

That’s causing quite a stir in the city, as social media posts this week have revealed. In one photo that went viral after being posted to Facebook, a receipt shows more than $3 in tax added to the cost of a $5.99 12-pack of Propel, an energy drink.

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