Philly imposes new soda tax – and now mayor attacks retailers for ‘price-gouging’ to cover it

Philly imposes new soda tax – and now mayor attacks retailers for ‘price-gouging’ to cover it
(Image via CNN)

[Ed. – Poor, minorities hardest hit.]

Democratic Philadelphia Mayor Jim Kenney worked hard to see a sweetened beverage tax implemented in his city, but now that it’s been applied, he’s calling out businesses for charging higher prices for their sodas.

Rather than allowing for the possibility that the increase in price might be related to the 1.5-cents-per-ounce tax, Kenney instead said beverage companies are “gouging” customers in an effort to frustrate consumers about the tax.

“This is what they do. They spent 10 1/2 Million dollars in an advertising campaign to beat the tax, they lost,” he said earlier this week, according to CBS Philadelphia. “They spent hundreds of thousands of dollars in legal fees and they lost. And they’ll continue to lose because their legal case is not sound and their public case is not sound.”

As Reason magazine points out, the spike in soda cost is not necessarily just an effort to anger buyers. The tax is implemented at the wholesale level, which means that, without an increase in price, the company would have to swallow the cost…

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