Did you know about the bagel tax? In many states like New York, home of the bagel and schmear, bagels and cream cheese are subject to a prepared food tax. This ridiculous tax only applies once a bagel is sliced and schmeared, so we found a bagel shaped loophole for everyone to stick it to the tax man. GUT with Philadelphia Cream Cheese and Seinfeld's favorite bagel chain, H&H Bagels, invented and debuted The Tax-Free Bagel, a classic New York bagel, pre-stuffed with Philadelphia Cream Cheese, making it exempt from the unsavory bagel tax. OOH, PR and social directed people to this delicious loophole, which was available the week leading up to, and on Tax Day.