Is The Soda Tax Really A Bright Idea?

PHILADELPHIA - Philadelphia mayor Michael Nutter's plan to levy taxes on soda sold and served in his city has lots of fans - in the suburbs!

Fox 29 talked with several businessmen Wednesday night who supported Nutter's controversial plan. They own convenience stores just outside Philadelphia.

Likewise, we also talked to city residents who planned to drive to outside the city to buy soda.

In a literal Tea Party situation, Nutter wants to levy taxes on sugar-sweetened drinks like soda and  iced tea as a way to pay for Philadelphia’s budget.

The 2-cent-per-ounce tax on sweetened drinks is a key part of Nutter's budget.

Nutter also wants to charge most taxpayers $300 for trash collection each year, with a $100 discount for poorer residents.

City officials reportedly think the two surcharges would cut most of the city’s deficit.

The budget proposals will be announced Thursday and will set off protests from consumers and business owners.

Philadelphia allegedly has a $150 million deficit to make up, and Nutter will target city services and consumer goods as a way to make up the shortfall.

Some critics want Nutter to make cuts in his own staff. He reportedly has more than 13 employees that his predecessor who make more than $100,000 a year.

His critics also say Nutter should collect fees for ambulance services as a way to make up part of the shortfall.

Both issues will get plenty of public debate in a tight economy where taxation has become a big election issue.