New tax implementation by Philadelphia is having immediately negative consequences.
A local spokesperson for Pepsi says the “soda tax” passed last summer is causing Pepsi to have to re-evaluate some expenditures (per Daily Signal):
“Unfortunately, after careful consideration of the economic realities created by the recently enacted beverage tax, we have been forced to give notice that we intend to eliminate 80 to 100 positions, including frontline and supervisory roles,” Pepsi spokesman Dave DeCecco said, according to Philly.com.
DeCecco was quick to offer a remedy:
“If the tax is struck down or repealed, we plan to bring people back to work,” DeCecco said, according to Reuters.
It is easy to see how this tax could cause a loss of revenue, as the Daily Signal reports:
The tax, passed in June 2016 by the Philadelphia City Council, adds 1.5 cents to every ounce of liquid, which amounts to an 18-cent tax for a 12-ounce can of soda and a $2.16 tax for a 12-pack of soda.