The Tax Free Bagel

Philadelphia goes hand in hand with bagels (59% of consumers use Philadelphia Cream Cheese on bagels). And in New York, people don’t know that they’re being taxed 8.875% for ordering a bagel schmeared with cream cheese. This is because a bagel needs to be sliced to get cream cheese inside of it; therefore, it’s legally considered a “prepared food.” Yeah, ridiculous. Philadelphia knew that if they helped people with this sneaky bagel tax, people were going to enjoy more Philadelphia cream cheese, tax-free.