Philadelphia is one of the first cities in the United States to impose an extra tax on soda. With the number of obese people in the United States increasing at a rapid rate, public officials are worried about the outcome on the society. About 35% of the population in America are obese. The government spends large sums of taxpayers’ money on issues that are brought about by the obesity pandemic. The increase of taxes on soda is meant to deter people from consuming the product.
Philadelphia soda consumers are required to pay 1.5 cents for an ounce of soda from early 2017. The increase of tax on soda has made the soft drink cost more than other healthy drinks. This is focused on encouraging the people of Philadelphia who regularly consume soda to consume healthier drinks. Large income earners, however, aren’t affected since they can afford to purchase the products at whatever cost.
The downside of the increase in soda tax, is the tax burden on low-income earners. This is where Karl Heideck comes in. Karl Heideck is a contract attorney with over 10 years’ experience in serving the people of Philadelphia. He gained valuable experience when it comes to general decree in pretrial, post-trial and individual jurisdiction venues while he was working with Pepper Hamilton LLP. He is a Bachelor of Arts degree holder from Swarthmore College. Karl Heideck graduated from James E. Beasley law school at Temple University in 2009 with a Juris Doctor.
Karl Heideck is now focused on providing services that relate to corporate law, commercial litigation, product liability, and employment proceedings. He is also a writer, he serves the people of Pennsylvania with news on legal developments through his blog.
Small businesses, also known as mom and pop shops, suffer from the tax on soda since most of the customers travel away from the city to purchase soft drinks. These small businesses have gone out of business since they keep posting huge losses in revenue.
Local soda manufacturers like Pepsi and Canada Dry have reacted to this increase of tax by reducing 20% of their workforce. Philadelphia stands to get a huge tax deficit due to the reduction in revenue collection. The Pennsylvania courts, however, have ruled in favor of this tax. The soft drinks companies continue to fight this, it is now left to the Supreme Court to hear and pass a ruling on this matter.