SACRAMENTO, CA (MPG) - According to a new cost impact study released by the Center for Jobs and the Economy, the average family of four could pay more than $900 extra per year in higher costs under the Tax on Plastic Initiative (Initiative #19-0028A1) that has qualified for the November 2022 ballot.

The analysis estimates the ballot measure’s tax on plastic products and complex regulatory requirements will generate nearly $9 billion per year in higher direct and indirect consumer costs—more than double the $5.6 billion currently paid for recycling programs.  

“This massive tax increase could not come at a worse time for working families. Record-high inflation and skyrocketing food costs are already causing serious financial hardship for nearly half of California’s households making less than $40,000 per year, according to a recent poll from the Public Policy Institute of California,” said Robert Gutierrez, president of the California Taxpayers Association.  “Hardworking Californians can't afford to add another $900 per year to their expenses.”

The cost impact study looks at the job, consumer costs, and business impacts of the Plastics Tax Initiative, which proposes a one-cent tax on single-use plastic packaging and food containers while adding a myriad of new regulatory requirements on plastic products. Despite the measure’s significant cost increase, its flawed provisions make it unlikely to achieve the state’s current recycling goals. 

Some of the report’s key findings include: Adds $901 per year in higher costs for consumer goods for the average family of four; Creates nearly $9 billion more per year in total direct and indirect costs, including $4.3 billion in higher taxes—one of the largest state tax increases in recent history on working families; Doubles the $5.6 billion that Californians currently pay for recycling while likely failing to achieve California’s recycling diversion goal; Impacts more than 40,000 in-state good-paying, middle-class jobs in the packaging industry that are disproportionately held by Latinos and workers with a high school degree; Dedicates only about 30% of its tax proceeds toward increasing recycling and reducing plastic waste; and Opens consumers to even higher costs in the future by allowing the state to impose new recycling taxes and fees on other materials without a vote of the Legislature.

About Stop the Tax on Working Families

Stop the Tax on Working Families is a coalition of consumers, taxpayers, and small businesses opposed to the Tax on Plastic ballot measure.

Paid for by Stop the Tax on Working Families, a Coalition of Taxpayer Groups and Business Associations Advocating to Keep California Affordable. Committee Major Funding from American Chemistry Council, California Business Roundtable.