Senate Finance Committee Considers Single-Use Plastic Tax

As various proposals emerge from both chambers of Congress regarding negotiations over the Build Back Better Act, which consists of approximately $3.5 trillion in new federal spending, PPAI’s public affairs team is contemplating the legislation’s possible impact on promotional products industry companies.

One such proposal considered by PPAI entails a tax on the resin used to produce single-use plastics. The plan is equivalent to a tax on single-use plastic items. According to an analysis done by the American Chemistry Council, this proposal would impose a $40 billion burden for companies, which would ultimately be passed on to consumers.

There is also similar legislation that has been introduced separately in the House and Senate this summer. The Senate introduced the Rewarding Efforts to Decrease Unrecycled Contaminants in Ecosystems (REDUCE) Act in August, which establishes a fee for the sale of new or “virgin” plastic that is used for single-use products. In September, the House also introduced its legislation aimed at having it included in the large reconciliation bill. The House version creates a related, although lower, tax on new resin manufactured for single-use plastics. Both pieces of legislation are presented with the goal of simultaneously encouraging the use of recycled plastics and decreasing the use of new or virgin plastics. The fees collected from the proposed tax would be allocated for a Plastic Waste Reduction Fund, which would be tasked with enhancing recycling ventures in the U.S.

filed under September 2021
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