Tom Charley: Philly-style tax could impact Western PA
Published in Trib Live, Nov 26th
I have been working in the grocery industry my entire life. I was born into it. I am fourth generation, and just had my first baby girl who could take it to the fifth generation.
These days, I am concerned about the “soda tax” (“pop tax” for those of us from the western side of the state) that has significantly impacted my colleagues in Philadelphia.
The city created the tax a few years ago, and the results have been devastating for community-owned grocery stores. This tax raises the price on more than just pop. Sports drinks, almond and soy milk, juice, and many other beverages are being taxed, too.
More than 1,200 jobs have been lost. More than $80 million in economic activity left the city. It doesn’t take an economics professor to understand why: Shoppers who were able to travel simply started traveling across the city line. And since no one wants to make two trips for groceries, they made the rest of their purchases outside the city, too. Unfortunately, shoppers who can’t travel easily, mostly families with low incomes, have had to bear the increase in cost.