Business Owner: Soda Tax May Lead To Layoffs

PHILADELPHIA (CBS) - Opponents of Philadelphia's sugary beverage tax delivered petitions to the Pennsylvania legislature in hopes of some type of relief from the city's newly instituted tax on sodas and other drinks.

Andy Pincus, the owner of Carbonator Rental Service, who delivers carbonation and syrup to business in Philadelphia, told Chris Stigall on Talk Radio 1210 WPHT that the tax has taken such a toll on his enterprise, that he may have to reduce staff.

"After Labor Day, we're going to have to reexamine this and if volume continues to decline, at some point, we're going to have to reduce labor hours or, I dread the possibility of having to lay people off. In our 60-plus year history, we've never laid anybody off for lack of work, but we've never had a time like this before."

He also stated that he is being told the same thing from stores and restaurants that he services.

"Now, I'm hearing from my customers that their customers aren't ordering soda, without even looking at what the price is because, oh, I'm in Philadelphia now, the cost of soda must be higher, that'll just be a glass of water please...I looked at my year over year sales compared to last year, within Philadelphia, I'm off over 22 percent."

Pincus hopes that Harrisburg will find that declining revenue on their end will lead the legislature to intervene in some way.

"Soda is also subject to sales tax and, when they're drinking less soda, that means the state is getting less sales tax revenue. That's why I'm hoping to have a compassionate ear here in Harrisburg. Their sales tax revenues are getting hurt."