$6.7Million Short. Anatomy of a Soda Tax.

Philadelphia’s soda tax, including diet soda, has had its revenue estimates revised down by $6.7 million.

3 Reasons revenues are below estimates:

• tax avoidance due to consumer mobility
• the soda tax made beer cheaper than soda
• news reports of  “harm to local manufacturing and convenience store workers and reductions in consumer choices”

Tax Foundation | Soda Tax Experiment Failing in Philadelphia Amid Consumer Angst and Revenue Shortfalls