The American Beverage Association (ABA) will be battling against the Philadelphia City Council after the latter signed the historic soft drink sin tax. ABA vows to put an end to the measure by filing a legal action alongside the people of Philadelphia.

1. LABWORKS
http://www.labworks.com
The Beverage
Industry’s Battle
Against New Soda Tax

2. The American Beverage Association (ABA) will be battling against the Philadelphia City
Council after the latter signed the historic soft drink sin tax. ABA vows to put an end to the
measure by filing a legal action alongside the people of Philadelphia.
American Beverage Association vs. Philadelphia City Council
The trade group ABA is defending the rights of PepsiCo, Snapple Group, and Coca-Cola.
They have released a scathing statement referring to it as discriminatory as soon as the
council revealed the 13-4 approval vote.
ABA also called the tax regressive since lower income families are hit the hardest as,
compared to higher income families, they spend more of their income on the tax. They
understand the crippling effect it will cause on small businesses, how it will threaten family-
sustaining jobs and even raise grocery bills.

3. ABA claimed the decision was against the law and they will take sides with the majority of
the population in Philadelphia who are not in favor of the tax. Lauren Kane, a spokeswoman
of ABA, shared that the association have not crafted the lawsuit yet. However, she revealed
their main argument will revolve around the fact that the local council does not have the
power to impose the tax. She also said the decision ignores the Pennsylvania constitutional
requirement of uniformity of taxation.
The Sweetened Beverage Tax
The soda tax imposes an additional of 1.5 cents per ounce to the price of diet and sugary
beverages. Philadelphia Mayor Jim Kenny predicts the tax will generate USD 91 million
yearly, which will be used in improving the public school system of the city.
As opposition, ABA commissioned a telephone poll revealing 58 percent of voters in the city
against the tax. Kane says that if people were given their right to vote, the tax would not
be imposed. They will continue to fight the battle alongside the people of Philadelphia
before more cities like Utah start imposing the tax.

4. Sources:
 http://www.foodnavigator-usa.com/Regulation/Beverage-industry-to-fight-back-
Philadelphia-s-new-soda-tax
 http://labworks.com/
 http://www.politico.com/tipsheets/morning-agriculture/2016/06/beverage-
industry-vows-soda-tax-suit-214878%20