Philadelphia’s Soda Tax Is Excessive

Nate Benefield, the Vice-President for Policy Analysis at the Commonwealth Foundation, weighed in on Philadelphia Mayor Jim Kenney’s proposed soda tax and blamed the tax burden faced in the region for an overall decline to the Delaware Valley.

Benefield, while talking with 1210 WPHT’s Dom Giordano, said the soda tax is excessive.

“This is a punitive tax intended to be, well, this is good because we want to get people off of sugary drinks. But where does it end? Former Mayor and Governor Rendell said why not tax donuts? Well, why not extend this and tax the Philadelphia cheesesteak?”

He claimed that this tax and other’s like it are having a negative impact on the entire area.

“Across the region, certainly the City of Philadelphia itself has very high taxes, even in the suburbs where the taxes are lower and there is less regulation, you see the down flow in terms of job opportunities, where we see businesses moving to other parts of the country where the tax and regulatory climate is a little freer. That’s where job growth leads to population and you see that Philadelphia, both the city and the region have fallen in terms of their national rank.”

Benefield believes that Philadelphia and the communities surround it are paying a penalty for the high tax rate faced by residents.

“When you look at the metro area, you have New Jersey being part of that. New Jersey is one of the highest taxed states, I think the second highest state and local tax rate in the country, Pennsylvania, tenth highest tax burden. Certainly the City of Philadelphia itself, all leads to a regional decline because of that tax burden and the regulatory burden where residents as well as job creators are looking for other, more competitive areas to set up shop.”Philadelphia (CBS) – Nate Benefield, the Vice-President for Policy Analysis at the Commonwealth Foundation, weighed in on Philadelphia Mayor Jim Kenney’s proposed soda tax and blamed the tax burden faced in the region for an overall decline to the Delaware Valley.

Benefield, while talking with 1210 WPHT’s Dom Giordano, said the soda tax is excessive.

“This is a punitive tax intended to be, well, this is good because we want to get people off of sugary drinks. But where does it end? Former Mayor and Governor Rendell said why not tax donuts? Well, why not extend this and tax the Philadelphia cheesesteak?”

He claimed that this tax and other’s like it are having a negative impact on the entire area.

“Across the region, certainly the City of Philadelphia itself has very high taxes, even in the suburbs where the taxes are lower and there is less regulation, you see the down flow in terms of job opportunities, where we see businesses moving to other parts of the country where the tax and regulatory climate is a little freer. That’s where job growth leads to population and you see that Philadelphia, both the city and the region have fallen in terms of their national rank.”

Benefield believes that Philadelphia and the communities surround it are paying a penalty for the high tax rate faced by residents.

“When you look at the metro area, you have New Jersey being part of that. New Jersey is one of the highest taxed states, I think the second highest state and local tax rate in the country, Pennsylvania, tenth highest tax burden. Certainly the City of Philadelphia itself, all leads to a regional decline because of that tax burden and the regulatory burden where residents as well as job creators are looking for other, more competitive areas to set up shop.”

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