REDUCE Act of 2023 Rewarding Efforts to Decrease Unrecycled Contaminants in Ecosystems Act of 2023
Impact
The implementation of this excise tax is expected to have significant implications for manufacturers, importers, and consumers of plastic products. It seeks to incentivize reduction in the use of virgin plastics by placing a financial burden on those who produce or import these materials, ultimately driving down the volume of single-use plastic entering the ecosystem. Furthermore, the funds raised through this tax will be allocated to the 'Plastic Waste Reduction Fund,' supporting recycling infrastructure, waste detection and cleanup activities, as well as addressing the environmental impacts of plastic production.
Summary
SB2844, known as the 'Rewarding Efforts to Decrease Unrecycled Contaminants in Ecosystems Act of 2023' or 'REDUCE Act of 2023', aims to establish an excise tax on virgin plastic resin and certain single-use products that are made from this resin. The bill proposes a structured tax that begins at ten cents per pound of taxable virgin plastic in 2024, increasing progressively over subsequent years. The objective is to generate revenue specifically earmarked for initiatives focused on reducing plastic waste and enhancing recycling efforts across the United States.
Contention
While supporters of the REDUCE Act argue that it is a crucial step in combating plastic pollution and protecting ecosystems, opponents may raise concerns regarding the economic impact on industries relying heavily on virgin plastics. Other points of contention include the methods of tax collection, potential regulations governing compliance, and exemptions for small-scale producers. Public sentiment and lobbying from both environmental groups advocating for the bill and industry stakeholders opposing it could influence the legislative process ahead.
Enforcement
The bill mandates that the Secretary of the Treasury establish regulations ensuring proper tax administration, and establishes a framework for refunds on taxes paid for exported items. This regulatory structure is designed to create transparency and accountability in how the tax is applied, while also allowing for special cases where lower tax rates might be warranted based on specific usage scenarios.