The Senate Local Government Committee Tuesday held a hearing on the Philadelphia Soda Tax with comments presented from a variety of witnesses on the impacts the tax has had on the city and small businesses.
Click Here to watch a video of the hearing and for copies of written testimony.
Philadelphia Controller Alan Butkovitz said “the beverage tax is killing local business and is jeopardizing future access to fresh food stories in our city.” At the same time he said the amount of money dedicated to pre-K education was cut in half and the remaining funds were committed to other projects and initiatives like community schools and rebuilding parks and recreation centers.
“While these are worthy projects and important to advancing our city, it was unnecessary to implement the beverage tax to fund them,” Butkovitz said.
Danny Grace, Teamsters Local 830, told the Committee the tax is regressive and it has caused a drop off in sales of the beverages covered and 150 permanent layoffs in the union. He added job losses were not limited to the union and beverage companies, but included supermarkets, convenience stores, Mom and Pop shops, restaurants and fast food chains in the city.
Karissa Lopez from Pepsi said the soda tax has caused Pepsi’s business to decline by approximately 40 percent in the city and a loss of her job and others. She said she was fortunate to be transferred to a different position outside Philadelphia.
Angel Media from Coca-Cola said sales on his route are down 35 - 40 percent which equates to $150 - $200 in lost income a week. He added, “I am not alone. A store owner on my route recently closed his doors after more than 40 years of being in business due to this burdensome tax. This tax is a hardship on the working-man and on the poor and it is this city’s responsibility to right this wrong.”
Jeff Brown of Brown’s Family Shop-Rite said, “The Philadelphia beverage tax is the largest of its kind in the nation and impacts nearly 4,000 items in our stores. And many of these beverages are not soda drinks.”
Donna Cooper of PA Citizens For Children and Youth supported the tax saying, “Those opponents are looking for a new venue to state their objections. In fact, how this discussion is framed today sounds a great deal like the President’s rallies to save the 70,000 coal mining jobs in America while our clock is being cleaned by international competitors growing their solar and other alternative energy sectors.”
Jonathan Kirch, American Heart Association, said, “The policy provides opportunities for Philadelphia children to benefit from high quality Pre-K education, which improves their ability to live prosperous, healthy lives and achieve their full potential. In addition, the pre-K program allows their parents and other family caretakers to go to work and created over 200 jobs, both of which contribute to the Commonwealth’s economy.”
Also providing testimony were: Marc Stier, PA Budget and Policy Center; David McCorkle, PA Food Merchants Association; and Andy Pincus, Carbonator Rental Service.
Sen. Scott Wagner (R-York), Majority Chair of the Committee, said the real problem is spending and mismanagement instead of revenue, indicating displeasure with both Harrisburg and Philadelphia. He emphasized banks can shut stores down if they do not meet sufficient payments and margins, summarizing that the state cannot “tax our way to salvation.”
Click Here to watch a video of the hearing and for copies of written testimony.
Sen. John Blake (D-Lackawanna) serves as Minority Chair of the Committee.
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