Washington, D.C. – House Republicans are making another push to eliminate a controversial tax on chemical manufacturers, arguing that it has driven up costs for everyday products like soap, lightbulbs, and electronics.
The Chemical Tax Repeal Act was recently reintroduced by Rep. Beth Van Duyne (R-TX), alongside Reps. Carol Miller (R-WV), Darin LaHood (R-IL), and Mike Carey (R-OH). The bill seeks to roll back the Superfund excise tax, which was reinstated under President Biden’s Infrastructure Investment and Jobs Act in 2021.
Supporters of the repeal argue that the tax not only raises prices for consumers but also makes it harder for American manufacturers to compete with countries like China.
What Is the Superfund Tax?
The Superfund tax is a federal excise tax applied to 42 chemicals and raw materials that are commonly used in manufacturing. These chemicals are essential for producing everyday goods, from cleaning supplies to electronics.
The tax was originally introduced to fund environmental cleanup efforts but was reinstated in 2021, raising concerns about its impact on production costs and supply chains. Estimates suggest that by 2031, the tax could result in nearly $15 billion in additional costs to the economy.
Why Are Lawmakers Pushing for a Repeal?
Rep. Van Duyne, who is leading the effort, says the tax is unfairly burdening American families.
“President Biden’s chemical tax has driven up prices on essential goods while making U.S. manufacturers less competitive,” Van Duyne said. “This bill will help lower costs for families and ensure our businesses can compete on a global scale.”
Rep. Miller echoed this sentiment, saying, “This tax has made everything from household cleaners to basic electronics more expensive. It’s time to put an end to policies that hurt American businesses and give foreign manufacturers an unfair advantage.”
Industry Groups Support the Repeal
The American Chemistry Council (ACC), a major industry group, has expressed strong support for the bill. ACC President Chris Jahn said the tax has had “far-reaching impacts” on the economy, increasing costs for both businesses and consumers.
The Alliance for Chemical Distribution (ACD) has also backed the repeal, emphasizing that small and family-owned businesses are particularly affected by the rising costs caused by the tax.
What’s Next?
The bill was first introduced in the previous Congress but did not advance. Now, with Republicans renewing their push, they hope to gain more support and push it through the legislative process.
As lawmakers debate the issue, consumers and businesses will be watching closely to see if the tax is repealed—and whether it leads to lower prices on everyday goods.
