A US Senate bill to put a 10 cent/lb tax on virgin plastic resin in 2022 is currently in committee, after it was introduced by Senator Sheldon Whitehouse, a Democrat from Rhode Island, under the REDUCE Act. The Rewarding Efforts to Decrease Unrecycled Contaminants in Ecosystems (REDUCE) Act, also known as S.2645, will apply to virgin plastic used to make single-use products, including plastic packaging, beverage containers, bags and food service products. Exported virgin plastic and post-consumer recycled resin would be exempt.
The fee would apply to plastic makers, producers, or importers of more than 10 tons. The following table shows the proposed tax on virgin plastic per pound from 2022-2024.
| Year | Tax per lb |
| 2022 | 10 cents |
| 2023 | 15 cents |
| 2024 | 20 cents |
The bill also provides rebates for certain products such as companies that make medical products, containers or packaging for medicines and personal hygiene products. Virgin plastic used to make non-single-use products would also qualify for this rebate. The revenue from these fees will go into the creation of a Plastic Waste Reduction Fund, according to the bill’s text. Funds will be used to implement initiatives that reduce plastic waste and improve recycling rates.
The bill stipulates improvements to recycling infrastructure, marine debris reduction, detection, monitoring, and clean-up activities to address pollution and manage impacts from the production of plastic. The fund would also support grant programmes established under the Save Our Seas 2.0 Act and the Marine Debris Act. Importers will also be subject to the levy and will have to furnish information to determine the tax fee, but if they refuse to provide this information, they will be taxed at 10% of the appraised value of the item.