US chemicals may face more taxes, regs in ‘09

19 February 2008 18:48  [Source: ICIS news]

WASHINGTON (ICIS news)--US chemical firms next year may see tax increases and a wave of environmental regulations similar to the EU registration, evaluation and authorization of chemicals (REACH) programme, a top industry official said on Tuesday.

 

Charles Hinnant, chairman of the Synthetic Organic Chemical Manufacturers Association (SOCMA), said in a statement circulated on Tuesday that if Democrats win control of the White House later this year and retain control of Congress, the US chemicals industry may be in for some significant changes.

 

“Change seems to be on everyone’s mind at the moment, no matter which party is speaking on the subject,” Hinnant said.

 

The US will hold elections on 4 November in a nation-wide contest that many observers expect will result in wider control of Congress by the Democrat Party and perhaps put a Democrat in the White House as well.

 

Hinnant, president of Charkit Chemical Corp. of Norwalk, Connecticut,  said that in those circumstances he expects US federal policies to make a marked shift to the left.

 

“My observation is that if we have a Democratic president and Congress after the elections, it is likely we will be facing higher taxes, inflationary cost increases and REACH-type regulatory issues,” Hinnant said.

 

In anticipation of a possible Democrat sweep of Congress and the White House in November, Hinnant said he hopes to see SOCMA increase its federal lobbying role.

 

“One thing I would like to see develop, and SOCMA’s done a great job so far, is to become a strong voice on the Hill,” Hinnant said, referring to the Capitol Hill seat of Congress.

 

In addition to the possibility of REACH-like legislation emerging from the US Congress in 2009, Hinnant said that the ability of US chemicals firms to deal with the EU’s implementation of REACH is one of two major concerns facing specialty and custom chemicals manufacturers this year.

 

The other, he said, is whether and how US chemical producers will be able to pass along increasing raw materials prices.

By: Joe Kamalick
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