Dec 02 2021
WASHINGTON— Sens. John Kennedy (R-La.), Ted Cruz (R-Texas), John Barrasso (R-Wyo.), Jim Inhofe (R-Okla.), Pat Toomey (R-Pa.) and Mike Lee (R-Utah) today introduced the Chemical Tax Repeal Act to eliminate the Superfund Tax that President Biden’s infrastructure package has imposed on job creators in Louisiana and elsewhere.
“The fake infrastructure bill was drafted to raise taxes on and kill jobs in Louisiana specifically. 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. This tax is unfair and unwise, and we need to pass the Chemical Tax Repeal Act to stop this tax before it starts hammering Louisiana’s economy,” said Kennedy.
“With this administration, the cruelty is the point. At a time when President Biden’s inflation and supply chain crises are burdening Americans, the Superfund Tax contained in the infrastructure package will only lead to increased overhead costs for manufacturers and skyrocketing prices for everyday household items. It’s crucial we pass the Chemical Tax Repeal Act to defend hardworking American families and job creators from paying the price for the historic, out-of-control spending in Washington,” said Cruz.
This tax targets Louisiana’s petrochemical industry directly. These manufacturers will pay an estimated $1.3 billion in new taxes over 10 years, or $130 million a year—second only to Texas.
The newly-signed law increases the Superfund Tax to twice its prior levels. It imposes roughly $14.5 billion in taxes on 42 different chemicals, critical minerals and metallic elements that are the building blocks of common household items such as plastics, rubber, concrete, soap, lightbulbs and electronics.
Groups against the Superfund tax include the National Taxpayers Union, Americans for Prosperity, Americans for Tax Reform, the Council for Citizens Against Government Waste, Freedom Works and the Taxpayers Protection Alliance.
Text of the Chemical Tax Repeal Act is available here.