For most politicians a new tax or regulation is the go-to solution for a purported problem. In the case of saving the environment a popular choice is the “bag tax.” In 2010 alone, 15 states had proposals pending to impose a tax per plastic bag consumed at check out lines statewide. This year lawmakers in Virginia and Maryland will try again. Similar to the 5 cent tax already in place in neighboring Washington, DC, politicians in these states want to discourage bag consumption in order to reduce the plastic waste that ends up in rivers and landfills. In reality, the bag tax is just another money grab. Its attempt to control individual behavior merely pushes up costs on businesses and shoppers, all with little environmental benefit.
In the coming weeks Democratic lawmakers in both states will propose their statewide tax proposals on plastic grocery bags. In Maryland, the tax would be 5 cents per bag and 20 cents in Virginia to finance Chesapeake Bay clean up efforts. State Delegate Al Carr of Montgomery and Delegate Joseph Morrissey of Henrico are the primary sponsors of the plans in their respective states. Each have been perennial supporters of the tax. Last year, Morrissey even tried to have plastic bags banned altogether.
While jacking up the price or even banning bags outright seems logical to reduce plastic bag waste, the opposite seems to happen. When government taxes or limits access to one product consumers substitute it for others that serve the same purpose. For example, people reuse disposable paper and plastic bags for a number of common household purposes: as garbage bags, for storage, as food containers, for pet waste or as packing material.
When government artificially inflates their costs consumers will likely substitute for other paper and plastic products, like garbage bags, to use for these secondary purposes. Stimulating bulk purchases of plastic bags can cause equal environmental damage. Ireland is a prime example of this. Shortly after instituting a nationwide bag tax, the nation's largest food retailer reported a 77% increase in the sale of trash can liners. Other retailers reported similar increases. In the United States, Seattle, Washington instituted a 20 cent tax in January 2009, while San Francisco, California banned bags altogether. Both measures had little effect on the cities’ litter reduction goals.
Moreover, these debates get caught up in the political process, benefiting those special interests with government connections. Del. Al Carr, the sponsor of the Maryland bill, said he has plans to tweak it this year to exempt farmers' markets and roadside stands in response to concerns from the Maryland Farm Bureau.
NTU will keep you posted as these proposals move forward in both Legislatures.