Sponsors (8)
The bill reduces taxes and compliance burdens for taxpayers and the IRS but does so at the cost of lost federal revenue that may raise deficits or force cuts or replacements for programs previously financed by those excise taxes.
Taxpayers (individuals and businesses) will pay lower excise taxes on goods/services covered by Chapter 38 beginning Jan 1, 2025, reducing their tax burden and increasing disposable income or business cash flow.
The IRS and Treasury will face reduced compliance, collection, and administrative workload related to the repealed excise taxes, likely lowering enforcement costs and paperwork for federal employees and taxpayers.
Federal revenues will decline by the amount of the repealed excise taxes, which could increase the federal deficit or require offsets elsewhere in the budget.
Programs or services that were funded in whole or in part by those excise taxes could face cuts or need alternative funding, harming beneficiaries of those programs.
Based on analysis of 2 sections of legislative text.
Repeals subchapters B and C of IRC Chapter 38, removing the excise taxes they impose.
Official title: Amend the Internal Revenue Code of 1986 to repeal the excise taxes on taxable chemicals and taxable substances.
Introduced February 18, 2025 by Rafael Edward Cruz · Last progress February 18, 2025
Repeals two subchapters of the Internal Revenue Code (subchapters B and C of Chapter 38), eliminating the excise taxes contained in those subchapters and removing their table entries. The tax repeal takes effect January 1, 2025, which will reduce federal excise tax collections and lower tax costs for entities that currently pay those specific chemical-related excise taxes.