Local Governments Fail to Pass Soft Drink Taxes

According to news sources, both Philadelphia and the District of Columbia have failed to adopt taxes on sweetened beverages. Philadelphia’s mayor apparently never had a council majority to support his proposed soda tax and has now indicated that he will be forced to make cuts to police and fire department budgets and limit branch libraries to four-day weeks. A council member known as a leading administration critic reportedly characterized the mayor’s threat as “retribution.” In a related development, the D.C. Council has informally disapproved a proposal that would have taxed sweetened beverages sold in the district at one penny per ounce. The council member who proposed the tax wanted to use the revenue to fund a healthy school initiative that council has approved because the city’s financial officer has apparently indicated that funds are not available to implement it. The initiative reportedly requires schools to serve healthier food to address the child obesity problem. See Philly Online and The Examiner, May 21, 2010.