LOL, thx for pointing that out i didnt think much about it cause i misread it, the first thing is they arent "Subsidising" soda, they are taxing it, and the price has most definitely gone up as a direct result of the tax.
Philly Admits Soda Tax Is Crushing Local Small Businesses, Expanding "Food Deserts"
- Thread starter ThunderThor
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LOL, thx for pointing that out i didnt think much about it cause i misread it, the first thing is they arent "Subsidising" soda, they are taxing it, and the price has most definitely gone up as a direct result of the tax.
The problem in Philly is that many of the small grocery stores in urban areas depend on pulling in customers to buy products using low-cost soda as an inducement to get them in the door. Many of these stores are only blocks away from similar (and larger) stores that are not in the city limits, and do not charge the hefty soda tax. Now many of their customers are going the stores outside the city limits to avoid the soda tax, and the business of the traditional small urban grocery stores is suffering greatly. Many of them will likely go out of business -- which will create "food ghettos" in many sections of the city eventually.
It’s not “good ghettos”, it’s food deserts.
I grew up in a major city and am familiar with the local bodega. The soda tax is not killing these stores, these stores have been on the way out for years and have been losing ground to drug stores that have been expanding their pantry sections. Look at the growth of rite aid, cvs, etc.
The soda tax is not killing the stores but it is killing the soda industry in Philly. Say what you want but that is the power of local government. If Philadelphians wanted soda more than not then they would vote in new leadership and rescind the tax.
Right now, it’s only a big deal to people who live outside of the city.
Actually the term was "food ghettos" for decades until someone recently determined the term was not politically correct and then it became "food deserts".
There are many places in cities where grocery stores and pharmacies refuse to locate (or shut down their locations) due to high shrinkage (i.e. shoplifting). The only remaining option are the small grocery owners -- if they go out of business then the area becomes a "food desert" -- a place in a city with no nearby option for purchasing food.
Applying a soda tax is certainly not helpful for the business of these bodega stores (BTW the term "bodega" has recently been determined to also be racist). Between rising recent, thin margins, supply cost increases, shrinkage issues - these small groceries have been under significant pressure for years. Using soda as a low-cost leader to get people into these small stores is one of their competitive angles to stay in business; taking this angle away from the small stores will definitely (as shown by the article) decrease foot traffic & revenue.
Call the Silicon Valley 'Bodega' Plan What It Is: Racist and Gross
https://splinternews.com/call-the-silicon-valley-bodega-plan-what-it-is-racist-1806012781
It is a big deal to Philly residents. They are the one's paying the ridiculous tax.
Well, according to soda vendors, they’re not paying the tax because they’re not buying soda. Which is what was expected. Philadelphia determined they were either going to benefit from having a healthier city or a city with more funds to provide services to its residents. So far, so good; unless you sell soda.
I don’t understand why this is an issue, there are local governments that don’t even allow the sale of alcohol.
I will say it again, Philadelphia made a decision to tax soda to promote health and raise funds for services. So, what is the big deal?
Revenue from sales tax from in-city-limit groceries is falling; the same amount of soda is being consumed - it is simply be purchased at stores outside the city limits.
The tax has backfired. It is neither making residents healthier nor increasing the funds for services.