Thirty-eight CEOs representing America’s plastic makers and the plastics value chain send a letter to House and Senate leadership urging Congress to drop a proposed excise tax of $.20 per pound on the sale of virgin plastic. The proposed tax is intended to help pay for the $3.5 trillion reconciliation bill currently making its way through Congress.
The letter highlights that this tax is regressive, levying an estimated $120 billion in increased costs on consumers by escalating the cost of plastic materials by up to 26%. The tax would harm those families least able to afford higher prices on all sorts of essential products – a group of Americans President Joe Biden has pledged not to increase taxes on. Further, it would incentivize importing finished plastic products from China to the disadvantage of American manufacturers. Despite the bill’s intent to address issues like climate change, the tax would incentivize the use of alternative materials to plastic, many of which have been found to result in far greater greenhouse gas emissions over their lifecycles.
Also troubling is that despite the financial burden on Americans, the proposed excise tax would do nothing to meaningfully curb plastic waste as the funds are anticipated to be used to cover various government expenditures unrelated to plastic waste, according to the American Chemistry Council.
Chris Jahn, American Chemistry Council president and CEO remarks, “There is a way to ‘build back better,’ achieving the goals of the administration, without hitting consumers in the wallet; opening the door further to China; and jeopardizing our national priorities like addressing climate change.”
For more information, visit: www.americanchemistry.com
