Ask Microeconomics Expert

Question :Philadelphia passes a soda tax:

Philadelphia has become the second city in the United States to approve a soda tax.

In a final vote of 13-4, the Philadelphia City Council on Thursday passed a 1.5-cents-per-ounce tax on sugar-added and artificially sweetened soft drinks. That would add 18 cents to the cost of a can of soda, $1.08 for a six-pack or $1.02 for a two-liter bottle. The new soda tax would be on top of the 8% sales tax that already applies to soda in Pennsylvania. Soda is classified as food, which is tax exempt in some states, but not in Pennsylvania.

The measure is expected to be signed by Philadelphia Mayor Jim Kenney. Kenney originally proposed a 3-cents-per-ounce soda tax.

The new tax goes into effect on Jan. 1, 2017 and is estimated to raise $91 million a year.

That money will be used to fund pre-K expansion, community schools, reinvestment in parks and recreation centers, and add to the City''s General Fund. It will also fund tax credits that the council approved for retailers that sell "healthy" beverages. Back in 2014, Berkeley, California, became the first city in the country to pass a soda tax.

Lauren Kane, spokeswoman for the American Beverage Association, slammed the tax as regressive. "The fact remains that these taxes are discriminatory and highly unpopular - not only with Philadelphians, but with all Americans." She also noted that the ABA would try to take legal action to stop it.

For different reasons, policy experts question the efficacy of taxing one type of beverage or food to reduce the incidence of diabetes or obesity. Sugar, for instance, isn''t necessarily the only factor affecting the risk for -- or consequences of -- obesity, the Tax Policy Center noted in a paper published last December. What''s more, all sugars may contribute to health risks, even naturally occurring ones in juices and other beverages.

What is the supply and demand, any shifts , how would it change after the tax.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92296760
  • Price:- $20

Priced at Now at $20, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question show the market for cigarettes in equilibrium

Question: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the mode ...

Question recycling is a relatively inexpensive solution to

Question: Recycling is a relatively inexpensive solution to much of the environmental contamination from plastics, glass, and other waste materials. Is it a sound policy to make it mandatory for everybody to recycle? The ...

Question consider two ways of protecting elephants from

Question: Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all ...

Question suppose you want to put a dollar value on the

Question: Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost? The response must be typ ...

Question in the tradeoff between economic output and

Question: In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent? The response must be typed, single spaced, must be in times new roma ...

Question consider the case of global environmental problems

Question: Consider the case of global environmental problems that spill across international borders as a prisoner's dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries ...

Question consider two approaches to reducing emissions of

Question: Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermin ...

Question the state of colorado requires oil and gas

Question: The state of Colorado requires oil and gas companies who use fracking techniques to return the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefit ...

Question suppose a city releases 16 million gallons of raw

Question: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits in ...

Question four firms called elm maple oak and cherry produce

Question: Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of Table 12.6 sho ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As