A tax on sugary drinks in Philadelphia has made those drinks more expensive in the city than beer, according to a Tax Foundation report.
The 1.5-cent per ounce excise tax is 24 times higher than the Pennsylvania tax rate on beer. “Purchases of beer are also now less expensive than nonalcoholic beverages subject to the tax in the city,” according to the study.
The Tax Foundation noted that Philadelphia installed the tax as a means to raise revenue, not as a way to fight obesity.
The tax is also on diet soda, as a means to raise money for pre-kindergarten programs. However, less than half of the $39.4 million collected since the tax took effect Jan. 1 has gone to education, the study reported.
“In practice it awards just 49 percent of the soda tax revenues to local pre-K programs. Another 20 percent of the soda tax revenues fund government employee