REDUCE Act of 2023 Rewarding Efforts to Decrease Unrecycled Contaminants in Ecosystems Act of 2023
Upon its enactment, HB 5564 will have significant implications for state laws concerning environmental protection and waste management. The funds generated from this new excise tax will be allocated to the Plastic Waste Reduction Fund, focusing on activities aimed at improving recycling infrastructures, reducing marine debris, and addressing pollution impacts from plastic production. Opponents may argue that such taxes could disproportionately impact businesses reliant on plastic production, but supporters contend that the long-term benefits to environmental health and sustainability outweigh any short-term economic concerns.
House Bill 5564, known as the 'REDUCE Act of 2023', aims to amend the Internal Revenue Code to establish an excise tax on plastics. This legislation is designed to combat the environmental impacts of plastic waste, particularly those incurred from single-use plastic products. The proposed tax specifically targets taxable virgin plastic resin as well as certain imported plastic items, imposing a structured tax that would begin at ten cents per pound in 2024 and increase over the following years. The goal of this excise tax is to deter excessive plastic usage and incentivize recycling efforts by making the production of virgin plastics more costly while funding waste reduction initiatives.
One of the main points of contention surrounding HB 5564 involves the balance between economic interests and environmental responsibilities. Supporters argue that this bill is an essential step towards addressing the growing crisis of plastic pollution and encouraging sustainable practices. Conversely, critics may claim that imposing an excise tax could lead to increased costs for consumers and conflict with industries dependent on plastic goods, potentially harming their competitiveness. Additionally, there are concerns about the effectiveness of the allocated funds and whether they will efficiently address the systemic issues related to plastic waste management.