An excise tax hike on household items that was buried in President Joe Biden’s $1 trillion infrastructure package last year went into effect on July 1, according to the Internal Revenue Service (IRS).
A roughly $13 billion tax increase on 42 chemicals, metallic elements and critical minerals was included in Biden’s Infrastructure Investment and Jobs Act. Common household items like rubber, soap, concrete, plastics, lightbulbs and electronics will be impacted.
Superfund chemical excise taxes were previously in place between 1987 and 1995, according to the IRS. The infrastructure package, which the White House called “a once-in-a-generation investment,” triggered the re-implementation of the taxes.
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. Importers, producers and manufacturers will pay between $0.48 and $9.47 per ton in tax on chemicals, the outlet reported.
Republicans have been critical of the Biden administration for imposing the taxes amid soaring inflation and supply chain crises. Inflation reached 8.6% in May from a year prior, which is the fastest increase in 40 years.
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