Local coalition to fight against regressive grocery tax that hurts small businesses and low-­‐income residents Contact: Larry Miller or Anthony Campisi (215) 735-­‐6760 [email protected] or [email protected] Community leaders, small business owners, labor and citizens are banding together to protect working families and our local businesses from the regressive grocery tax proposed today for the city of Philadelphia. The proposal to put a hefty 3-­‐cents-­‐an-­‐ounce tax on beverages – like soda, teas and juice drinks – would make the cost of groceries skyrocket. •
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A 12 pack of soda’s cost would nearly double -­‐ more than $8 due to the tax. The $2.04 tax on a 2-­‐liter bottle would be more than the cost of the product itself. A family pack of beverages would be more than double the cost due to a $7.20 added tax, bringing the price to more than $13. Small neighborhood grocery stores and their customers would bear the greatest burden of this tax. Stores would be forced to pass on the cost of the tax to working families who can’t afford to shop in the suburbs in order to evade this tax. Other businesses would lose revenue from consumers shopping outside the city. “Our market is a community anchor and operates on small margins. I will have to pass a soda tax on to my customers,” said Enerolina Rodriguez, who owns the Rodriguez Grocery in North Philadelphia. “Two bad things will happen: Either they won’t be able to afford the high prices, or the higher prices will keep them from buying other products. My business won’t be able to absorb these losses. This tax is unfair to small businesses like mine and to the working families who shop with us.” A discriminatory tax on drinks like soda is unreliable and unstainable. This tax would put in jeopardy the very programs it’s intended to fund before they even get started. The tax won’t produce the revenue needed to support these programs. Fewer people shopping in Philadelphia means less money raised by the city. “Pennsylvania Food Merchants Association members in Philadelphia will work to ensure that Mayor Kenney and city council members are aware of the negative impact of the proposed ‘sugar-­‐sweetened beverage tax’ on consumers, retailers and the beverage industry,” said Dave McCorkle, President and CEO of the Pennsylvania Food Merchants Association, which represents 3,200 retail food stores that employ more than 150,000 workers across Pennsylvania. “We do expect that, if enacted, consumers will be forced to purchase many products of choice outside of Philadelphia.” This grocery tax would also hurt efforts by the city to expand access to food in poor neighborhoods. Although the city has made enormous strides in opening grocery stores in food deserts, this tax would raise costs and discourage working families from shopping there. ”This will be one more burden for overtaxed working families in Philadelphia,” said Larry Miller, spokesperson for Philadelphians Against the Grocery Tax. “The mayor’s proposal comes even as low-­‐
income Philadelphians are facing an increase in Philadelphia Gas Works rates, as well as a proposed double-­‐digit water rate hike.” The impact of this tax would be felt in every aspect of Philadelphians’ lives – from trips to restaurants to visits to sporting events and even at the movies. “As the trade association representing 10 major Philadelphia movie theaters, we know that thousands of people from all corners of the city would have to pay more to see their favorite films because of this tax,” said Gina DiSanto, President of the National Association of Theater Owners of Pennsylvania. “This tax will hit movie goers from Old City art houses to North Philadelphia megaplexes and will prevent families from spending quality time together doing something they love.” Time and again, Philadelphians have rejected similar grocery taxes. The current proposal is 33 percent higher than the failed tax proposed by former Mayor Michael Nutter. To learn more about the Philadelphians Against the Grocery Tax coalition, visit www.NoPhillyGroceryTax.com. Further Contact Information Enerolina Rodriguez Owner, Rodriguez Grocery Store in north Philadelphia (267) 997-­‐7975 Dave McCorkle President and CEO of the Pennsylvania Food Merchants Association (717) 602-­‐6411 John Longstreet President and CEO, Pennsylvania Restaurant and Lodging Association (214) 914-­‐3729 ###