A bill that would repeal the Biden-era Superfund Tax targeting chemical manufacturers was introduced last week by House Republicans.
The bill would amend the Internal Revenue Code of 1986 to repeal the excise taxes on taxable chemicals and taxable substances. It was introduced on Jan. 22 by bill sponsor U.S. Rep. Beth Van Duyne (R-TX). U.S. Reps. Carol Miller (R-WV), Darin LaHood (R-IL), and Mike Carey (R-OH) cosponsored the legislation.
“As part of my effort to lower costs for working families and empower American companies to compete on a level playing field against countries like China, I’m reintroducing the Chemical Tax Repeal Act,” Van Duyne said. “President Biden’s highly flawed chemical tax drove up prices for goods like soap, lightbulbs, and electronics while putting U.S. manufacturers at a disadvantage against countries like China. I’m grateful for the support of my Ways and Means colleagues in introducing this bill to help our working families keep more of their money, lower costs, and empower U.S. manufacturers to compete on the global stage.”
The Superfund tax levied $15 billion in taxes on materials essential in the production of household goods, the lawmakers said.
“The U.S. chemical industry has been wrongfully targeted by President Biden’s Superfund tax ever since the Infrastructure Investment and Jobs Act of 2021,” Miller said. “This shameful chemical tax has resulted in increased costs for household goods and placed U.S. chemical manufacturers at a competitive disadvantage compared to our foreign adversaries, such as China. I am joining my colleagues in re-introducing the Chemical Tax Repeal Act to protect working Americans, lower costs, and promote fair opportunities for American manufacturers to compete globally.”
The Chemical Tax Repeal Act was first introduced in the last Congress but failed to pass.
“The wrongful reinstatement of the Superfund excise tax under the Biden-Harris Administration has led to higher prices on household products for everyday Americans and makes us less competitive in the global economy,” LaHood said. “I am proud to join Rep. Van Duyne and my fellow Ways and Means colleagues in introducing the Chemical Tax Repeal Act and put America first.”
The Alliance for Chemical Distribution (ACD) and American Chemistry Council both support the bill.
“We welcome House reintroduction of the Chemical Tax Repeal Act and commend House Ways and Means Committee members Van Duyne, Carey, Miller and LaHood for addressing an issue with far-reaching impacts for the U.S. economy,” American Chemistry Council President and CEO Chris Jahn said. “Estimates by the Joint Committee on Taxation indicate these taxes could result in a nearly $15 billion hit to the economy by the time they expire at the end of 2031. We look forward to additional lawmakers joining the Chemical Tax Repeal Act and urge swift consideration to move it forward.”