Economy

Plastic bag bans and taxes hurt the American economy.

Each bag tax adds a new cost burden on shoppers. At a time when our nation suffers widespread unemployment, we can't afford to waste time on misguided policies that threaten economic recovery and American competitiveness.

Impact on Communities

• Research by the Beacon Hill Institute and Americans for Tax Reform found that Washington, D.C.'s plastic bag tax cost the city at least 100 jobs and resulted in a $5.6 million drop in aggregate disposable income.1
• In Oregon, Beacon Hill and the Cascade Policy Institute project that the current proposed bill will cost the state 277 jobs and result in a $2.3 million loss in aggregate disposable income.2
• Studies show that taxes and bans don't keep plastic litter out of the landfill. Without plastic grocery bags, people just purchase replacement bags—often made of thicker, heavier plastic—and then send those bags to the landfill, too.34

Impact on Families

• Plastic bags are chosen by more than 90 percent of consumers at the checkout. After using the bags to bring goods home, about 9 out of every 10 consumers reuse these bags for everyday household purposes.5
• Banning free plastic bags would potentially cost working families millions of dollars, forcing them to purchase thicker, larger plastic bags for these needs.
• Taxes are always subject to increase. In 2007, Ireland increased their plastic bag tax to 22 cents per bag, further hurting consumers.6

Download our fact sheet about how plastic bag bans and taxes hurt businesses and consumers.

1. The Impact of Bill 18-150 on the Economy of Washington, D.C.; The Beacon Hill Institute at Suffolk University; January 2011.
2. Oregon's Bag Tax: The Economic Impacts on Oregonians and Retail Stores; Cascade Policy Institute, Americans for Tax Reform, and The Beacon Hill Institute at Suffolk University; February 7, 2011.
3. Proposed Plastic Bag Levy - Extended Impact Assessment; Environment and Rural Affairs Department, Scottish Executive; August 2005
4. "Bin line sales double nation average after plastic bag ban"; Adelaide Advertiser, August 2011
5. National Plastic Shopping Bag Recycling Signage Testing, APCO, March 2007
6. "Plastic Bags Levy to be increased to 22c from 1 July 07;" Ministry of Environment, Heritage and Local Government; Republic of Ireland; February 21, 2007.