The Impact of Soda Taxation in Philadelphia

     The rate at which people are getting obese in the United States of America is bringing worries to public officials. Each year millions of the taxpayer’s money are used in the attempt to stem obesity. In this effort, various states are coming up with extra taxes and penalties. For instance, some states have added the tax for junk food and soda. They hope that this will be workable because when the product costs more to buy, many people will opt for healthier and cheaper options. From January 2017, the extra tax on soda was effected in Philadelphia. For each ounce the consumer purchases, they are required to pay a tax of 1.5 cents.

The soda tax was created with the best of intention. However, it is impacting negatively on the low-income earners. The larger percentage of individuals who take soda are low-income residents. Those who make higher income can easily pay the extra tax. The pop stores have also been affected. They are left to compete with grocery stores that have more capital. The consumers are opting to travel outside the city for their shopping, to avoid the taxes. Within two months, the small-scale business owners experience a 30 percent loss while their larger retail counterparts made a 20 percent increase in sales.

The soft drink industry is fighting against this new taxation. Some courts ruled in favor of the tax. The attorney of the sector said that the ruling of the lower court was not in line with standards set by the higher court and as such have appealed to the Supreme Court. Karl Heideck is a lawyer based in Philadelphia, and he quite understands the proceedings of the tax case. His area of specialty is litigation, compliance as well as risk management. Mr. Heideck has been practicing law for the last 10 years and as such has ample experience.

He is a graduate of Swarthmore College class of 2003. Karl Heideck later went to Temple University School of law and graduated in the year 2009. His experience in law has armed him with writing skills. He shares legal developments such as the extra taxation of soft drinks in Philadelphia on his blog.