According to the Internal Revenue Service, an excise tax increase on household goods that was included in President Joe Biden’s $1 trillion infrastructure plan last year took effect July 1.
A roughly $13 billion tax increase on 42 chemicals, metallic elements and critical minerals was included in Biden’s Infrastructure Investment and Jobs Act. Rubber, soap, concrete and plastics will all be affected. (RELATED: ‘Truly Historic’: Biden Takes Victory Lap During Bipartisan Infrastructure Bill Signing Ceremony)
Superfund chemical excise taxes were previously in place between 1987 and 1995, according to the IRS. According to the IRS, the infrastructure package was deemed “a once in a generation investment” by the White House.
Funds from the reinstated excise tax will be partially directed to the Superfund Trust Fund, which is administered through the Environmental Protection Agency (EPA) and responsible for “cleaning up some of the nation’s most contaminated land and responding to environmental emergencies, oil spills and natural disasters.”
The tax impacts Americans who import, produce or manufacture qualified chemicals, Bloomberg Law reported. Producers, importers and manufacturers pay $0. 48 and $9. 47 per ton in tax on chemicals, the outlet reported.
Republicans are critical of Biden’s decision to impose taxes amid rising inflation and supply chain crisis. Inflation reached 8.6% in May from a year prior, which is the fastest increase in 40 years.
“The fake infrastructure bill was drafted to raise taxes on and kill jobs in Louisiana specifically,” Louisiana Sen. John Kennedy said last year upon introducing a bill with other Republicans to eliminate the Superfund taxes. “Its Superfund Tax will increase taxes on our petrochemical industry by $1.3 billion, and that’s going to endanger good jobs at a time when inflation is already ravaging Louisiana families.”
The White House did not immediately respond to a request for comment, nor did the EPA. An IRS request for comment was declined.
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