Philadelphia is raking in more money than expected from its 1.5-cent-per-ounce soda tax.
The sugary beverage tax brought in $6.4 million in February, slightly more than January but on-target with projections.
Meanwhile, soda manufacturers are downsizing their soda offerings as a response. The Philadelphia Inquirer reports that mini-cans and 1 liter bottles are now en vogue with manufacturers because they incur less tax.
Pepsi said that its “larger package” sales have taken a 50% hit in the city with overall sales down 40%. Pepsi also plans to lay off up to 100 workers in the city.
The tax started in January, and the Philadelphia hopes that it will bring in $91 million annually. The money goes to fund pre-K and upgrading city park and rec centers.
Although the tax is starting strong, it is also under appeal — the next court date is in Pittsburgh on April 5.
More: “Coke, Pepsi fight soda tax with smaller bottles,” Joseph N. DiStefano, The Philadelphia Inquirer.
“Simplifying And Targeting Tax Subsidies For Child Care,” Elaine Maag, Tax Policy Center.
“During the 2016 election, Donald Trump proposed adding three new tax benefits for child care but a better fix would simply eliminate the exclusion. That would save about $1.1 billion a year, which Congress could use to provide child care benefits for families who make too little to take advantage of the current benefits.”
“CBO releases new score for ObamaCare repeal bill,” Peter Sullivan, The Hill.
“The CBO found that this version of the healthcare plan contains significantly less deficit reduction than the original but would lead to essentially the same levels of coverage losses and premium increases.”
“Tax, Medicaid Tweaks Not Enough As GOP Postpones Vote On Obamacare Replacement,” Kelly Phillips Erb, Forbes.
“Provost Removes Cincinnati Law School Dean Less Than Two Years Into Her Five-Year Term,” Paul Caron, Tax Prof Blog.
Photo: Jordan Whitfield.