Commentary: Shoppers, markets lose with Philly soda tax
From an economic standpoint, the Philadelphia beverage tax is a lose-lose situation – for consumers and city grocery stores. One month into the new law, the effect on both is greater than many anticipated.
Consider the impact on consumers. Mobile consumers have the ability to drive to nearby suburbs and buy their beverages without paying the tax, as well as their other groceries. They’ll save a little money, but take on the hassle of driving, spending money on gasoline, and adding to traffic. Proponents of the soda tax have suggested that after some period of time consumers will adjust and go back to shopping in their usual city store. I strongly disagree.