Just a week after I reported that Colorado was moving to increase taxes on its sugary drinks, Philadelphia Mayor Nutter is expected to announced a new tax on sugary drinks.
Nutter plans to present his 2010-2011 budget on tomorrow. Expected to be included is a 2 cents per ounce tax on sugary drinks. That’s right: 2 cents per ounce.
Let me run those numbers for you:
Can of soda: 24 cent tax increase.
Individual bottle of soda: 32 cent tax increase.
Six pack of soda: $1.44 tax increase.
2 liter bottle of soda: $1.28 tax increase.
But Nutter’s plan doesn’t stop there. It also includes a residential trash fee of $300 per year. No word yet on how businesses (and rental properties) would be affected.
It’s estimated that the soda tax and the trash fee would raise enough revenue to eliminate the City’s deficit. But at what cost?
Don’t get me wrong. I’m actually not opposed to the idea of increased taxes in the City. I realize that we have a budget problem like many cities and towns these days. And I want the City to continue to pick up my trash, plow my streets and keep my libraries open. I just wish we could do those things differently – like roll the cost into real estate taxes. Those would be more equitable than a flat residential fee and would be more efficient to administer. Even better for taxpayers? They’d be deductible, unlike the proposed trash fee.
But this trash fee as proposed? Nightmarish. I can feel it.
A lot of the details are still be worked out. I’ll let you know how things sit once we hear the official announcement.
In the meantime, don’t get too settled in your own city and/or state. My guess is that higher taxes and fees are coming to you, too.