Page 27 - Plastics News September 2021

INTERNATIoNAL NEwS

Senate Democrats Eye Plastics Tax In Its UK Plan Consultation

Budget Plan on SUP Ban

Sstages of deciding how to raise taxes cracking down on tax breaks for so-called T he U K
enate Democrats are still in the early on billionaires, raising the estate tax and

and haven’t even settled on how much conservation easements. Altogether, Government
his panel is considering more than a has planned to
dozen and a half possible tax increases. launch a public
The list amounts to a menu of options consultation
from which his fellow Democrats could on t he
choose rather than a road map of where proposed ban
they are headed. Senate Democrats are on a range
still in the early stages of deciding how of single-use
to raise taxes and haven’t even settled on plastic items this autumn.The proposal
how much revenue they need. Democrats is part of the government’s broader
are at odds over how big their spending commitment to stop plastic waste by
plan should be and how much of it the end of 2042. The ban could be
needs to be paid for. What’s more, the applicable on the supply of single-
entire roster of tax increases under use plastic plates and cutlery, and
consideration would probably raise more polystyrene cups in England. The
money than they need, especially after Department for Environment, Food
revenue they need. The Senate’s top Sen. Joe Manchin (D-W.Va.) underscored and Rural Affairs (Defra) has estimated
tax writer is proposing new taxes on on Thursday that he will not support that each person in England uses 18
executive compensation, stock buybacks spending anywhere near the $3.5 trillion single-use plastic plates and 37 single-
and plastics to help pay for Democrats’ that the Democrats’ budget allows.The use plastic items of cutlery annually. In
multitrillion-dollar social spending plan. House Ways and Means Committee is addition to the ban, the government
There are many including a proposal to developing its own slate of tax hikes, will impose a plastic packaging tax
impose an excise tax on corporations which Chair Richard Neal (D-Mass) has from April 2022. Plastic packaging
when CEO pay outstrips their average kept under wraps. Many of the proposals containing less than 30% recycled
workers’ pay by an unspecified ratio and Wyden is considering are not surprising: content produced in or imported into
another proposal to impose a 20-cent raising the corporate rate; increasing the UK will be charged $275 (£200) per
tax on the sale of “virgin” plastic used the top marginal income tax rate back tonne. Environment Secretary George
to make single-use plastics. Wyden, who up to 39.6 percent, where it was before Eustice said: “We’ve all seen the damage
has been meeting weekly with Finance Republicans cut it; lifting the tax on that plastic does to our environment. It
Committee Democrats, also wants his capital gains to match the top income is right that we put in place measures
colleagues to consider imposing an excise tax rate on high earners. Some would that will tackle the plastic carelessly
tax on corporations that buy back large expand on tax increases Democrats strewn across our parks and green
amounts of their stock and requiring quietly approved earlier this year as part spaces and washed up on beaches. “We
have made progress to turn the tide on
billionaires to pay taxes on unrealized of their coronavirus stimulus package, plastic, banning the supply of plastic
stock gains.He is proposing taxes aimed such as a proposal to extend a temporary straws, stirrers and cotton buds, while
at fighting climate change, such as a levy rule making it harder for people who our carrier bag charge has cut sales by
on the carbon dioxide content of fossil own unincorporated businesses to use 95% in the main supermarkets. “Now
fuels, and requiring people to withdraw losses to offset other types of income, we are looking to go a step further as
money from retirement accounts when thereby reducing their tax bills. Another we build back greener. These plans will
their balances exceed certain thresholds. would expand restrictions on business help us stamp out the unnecessary use
Finance Chair Ron Wyden (D-Ore.) is deductions for employees making more of plastics that wreak havoc with our
also suggesting the creation of a new levy than $1 million. natural environment.”

27 PLASTICS NEWS SEPTEMBER 2021