Philadelphia Mayor Jim Kenney Signs Soda Tax Into Law

(RTTNews) - Philadelphia Mayor Jim Kenney on Monday signed the city's 1.5 cents per ounce tax on both regular and diet soda beverages. The move, after two previous failed attempts, is aimed to help fund the expansion of pre-kindergarten education.

It is expected that most of the estimated $90 million in new tax revenue next year would be spend on prekindergarten, community schools and recreation centers.

Philadelphia's city council voted to pass the new tax on a 13-4 vote. The tax is set to take effect on January 1.

Similar tax proposals have been rejected 43 times across the country in the past eight years. Such plans are typically criticized to be affecting the poor who are more likely to consume sugary drinks.

However, supporters of the soda tax, who aims to discourage consumers from taking sugary beverages for health reasons, expects the victory in Philadelphia would lead to similar actions in other cities.

Former New York Mayor Michael Bloomberg contributed significantly to a media campaign in Philadelphia in support of passing the soda tax. He reportedly said that he will continue to support cities and nations pursuing these anti-obesity strategies.

"Obesity and poverty are both intractable national problems. No policy takes more direct aim at both than Philadelphia's tax on sugary drinks," Bloomberg said.

It is expected that the California cities of Oakland and San Francisco would take up the issue in November.

Meanwhile, the soda industry, after spending some $4.2 million for ads against the move, is adamant to fight to repeal the tax on sweetened beverages.

The American Beverage Association or ABA called the soda tax discriminatory and highly unpopular. In a statement, ABA said, "The tax passed in Philadelphia is a regressive tax that unfairly singles out beverages - including low- and no-calorie choices. But most importantly, it is against the law."