TAX TUNE UP 001: New Philadelphia Tax Could Create Opportunity for Bootlegging

Today our host, Ed Lyon, Chief Tax Strategist at Financial Gravity, walks us through the implications of a new Philadelphia tax on soda, and its unexpected potential consequences.

Key Takeaways:

[:18] The 1972 film, The Godfather, paints a picture picture of a time in American history that we don’t expect to see again. The film traces much of its backstory to the Volstead Act, which began Prohibition.

[1:13] Last year the Philadelphia City Council imposed a 1.5 cent per ounce tax on soda and artificially sweetened drinks, to finance pre-kindergarten and local development projects.

[2:15] This new tax costs $2,917.50 per truckload of soda.

[3:09] Retailers are struggling, trying to decide whether or not they should pass the cost of that tax on to consumers.

[3:32] The Philadelphia City council was careful to close all loopholes for this tax.

[4:12] Could this new tax mean new opportunity for Philadelphia’s once-mighty mafia?

[5:29] 58% of cigarettes sold in New York are bootlegged.

[6:19] Lots of taxes turn out to be fairly easy to avoid, and it’s our job to help you avoid them. Are you ready to start keeping more of your hard-earned money? For more information, check out FinancialGravity.com.