Business Law Prof: Adam Pincus 12/6/11
Pros and Cons of Philly’s proposed soda tax , if it had taken place
In April of 2010, Mayor Michael Nutter proposed a tax on soda (and other sweet beverages), in an attempt to try to generate more revenue for the city and curb the city’s growing child obesity issue.
The soda tax was an idea to generate millions of dollars in revenue for the city. The tax would’ve added an estimated $77million to the city’s coffers, $20 million of which, would go towards exercise and nutritional programs as well as school funding, which would possibly create new jobs for those in need but ,may have also resulted in losses for may convenience stores and supermarkets. Let’s face it, a few cents can make a big difference. A lot of the convenience store make most of their money from school -aged children that enjoy a refreshing soda every now and then.
Consumers more than likely would think twice about purchasing sweetened beverages . Though it may Aid in the fight against obesity and create more job opportunities and educational opportunities, it would have also contributed to the loss of money from suppliers due to a drop in sales, possibly impacting small store owners and prompting larger markets to continually offer coupons or discounts,
in order for products to sell.
I believe that there are so many other ways for the city to generate revenue and create jobs. I personally , I don’t believe the soda tax would have necessarily yielded the expected financial outcome. Things could’ve gotten thrown off course if consumers either cut back or stopped purchasing soda here Altogether, which would’ve been a major disappointment for the city.
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