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NAM opposes $14.5 billion chemical tax in bipartisan infrastructure bill

August 5, 2021 - We told you yesterday about the $14.5 billion tax on manufacturers, producers and importers of certain chemicals buried in the bipartisan infrastructure bill.


We learned today the National Association of Manufacturers (NAM), while supporting the bill overall, is also opposed to this onerous tax. In fact, the NAM sent a letter to Senators objecting to this provision yesterday. You may read the letter HERE.


In the letter, the NAM's Vice President of Energy and Resources Policy, Rachel Jones, began by stating the NAM supports the good provisions in the bill that will fund infrastructure improvements.


"The National Association of Manufacturers commends the U.S. Senate for moving forward H.R. 3684, the Infrastructure Investment and Jobs Act," she said in the letter. "This historic investment will support our economic recovery and provide the foundation for decades of American economic and environmental leadership."


But then she warned Senators of the problems with the $14.5 billion chemical taxes.


"Unfortunately, a misguided provision in H.R. 3684 would single out U.S. chemical and metals sectors for a $14 billion Superfund tax increase," she said. "The new tax should be dropped. For the chemical sector alone, the tax would make 44 plants uncompetitive and create conditions that could engender shutdowns. The new taxes would set back innovation in the U.S. and ultimately cost consumers. While the tax would be first placed on basic chemicals and metals, those are the building blocks for energy efficiency technologies, semiconductors, water treatment and disinfection, batteries, wind turbine blades, building materials, new road and bikeway surfaces and other advanced energy technologies this bill rightfully seeks to support and deploy."


"Because of the negative impacts of this tax on manufacturers, supply chains, and costs to consumers, Congress phased out this tax in 1995," she continued. "That was the right thing to do decades ago and it is the right thing to do today. Adding these taxes now will hurt global competitiveness and make critical products more expensive to all Americans. The NAM urges the Senate to adopt infrastructure legislation without reinstating a Superfund tax that is harmful to critical manufacturing sectors and undercuts the very goals of this bold infrastructure investment."


Associated Industries of Missouri also is opposed to this tax and has been informing Missouri Senators' staff on this point. We are hoping Senator Josh Hawley and Senator Roy Blunt will help remove this provision from the bill, along with protecting defense spending.


The U.S. Senate has been debating the bill and votes are expected as early as this weekend. We will keep you posted.

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