The proposed $2 trillion infrastructure plan for the US would boost spending to build and upgrade the country’s transportation, housing, automotive, and communications systems according to a recent article by Joseph Chang from Independent Commodity Intelligence Services (ICIS). The plan would require chemicals and polymers on a large scale not seen since World War II. The plan is still being debated and negotiated in congress, and some industry groups are opposed to the tax increases that the plan calls for.
Some of the most relevant projects to the powder and bulk solids industry that makeup part of the proposed legislation include transportation infrastructure such as highways, roads, streets, and bridges that require concrete and asphalt; automotive vehicle manufacturing, particularly for electric vehicles (EVs), which would require raw materials such as rare earth materials for batteries and plastics for general automotive use and in EVs; and water infrastructure upgrades to replace lead pipes with copper, galvanized steel, and PVC as well as to improve water remediation for contaminated drinking water.
The infrastructure plan proposes some changes to tax law, including raising corporate tax rates, closing tax loopholes, creating changes to the tax codes to discourage offshoring, and eliminating some tax breaks for the fossil fuel industry. The American Chemistry Council’s (ACC’s) CEO, Chris Jahn, said, “We do have grave concerns with tax provisions in the proposed plan that would make America less competitive, stifle innovation, and interfere with our ability to invest, innovate, create jobs, and provide technologies that will be critical to infrastructure improvement, clean energy, and climate solutions.” The National Association of Manufacturers, Associated General Contractors of America, and the American Petroleum Institute also expressed concerns over tax changes in the infrastructure plan.
ICIS, London, England, is a market intelligence company focused on the global commodities markets related specifically to the chemicals and energy industries. (6-21)