Philadelphia home of the soda tax has seen industry related to the sale of soda being crippled during these first two months of the tax being implemented. With companies facing up to fifty percent losses, layoffs are being considered on top of already cut hours. Local government in Philadelphia is quick to blame the loss of sales and work hours on erroneous reports and the greed of industry. The clear blame however is on the government for enacting the tax.
As should be obvious to anyone by now, increasing the price of a product decreases demand for said product. However products do not exist in a vacuum, the supply chain for products must adapt to change in demand. Sales shifting to other locations or employees suffering from decreased hours and layoffs should be expected during localized downturns. The vast majority of the Philadelphia city council are Democrats who once again prove that they don’t understand how to govern by seriously expecting a local product tax to help cover deficits.
The text of the law in question can be found here.