To: Chairman Jason Smith, Ranking Member Richard Neal, and Members of the House Ways and Means Committee
From: National Taxpayers Union (NTU)
Date: April 18, 2023
Subject: Markup of H.J.Res 39
Just weeks after the House of Representatives passed The Lower Energy Costs Act (H.R. 1), the Ways and Means Committee will consider a proposal to increase energy costs by raising tariffs on solar goods.
A proposed Congressional Review Act resolution, H.J.Res 39, would nullify a two-year suspension of tariffs on certain solar panels from Cambodia, Malaysia, Thailand, or Vietnam that use parts and components manufactured in China. National Taxpayers Union does not believe it is appropriate to increase energy costs via the Congressional Review Act.
The tariffs in question were initially imposed on Crystalline Silicon Photovoltaic Cells from the People's Republic of China in 2012. In 2022 the Commerce Department found that some of these duties were being circumvented through the inclusion of Chinese parts on goods imported from other countries.
The initial imposition of solar tariffs resulted from a flawed and biased system. The Commerce Department and U.S. International Trade Commission (USITC) failed to utilize cost-benefit analysis to consider the impact of tariffs on the U.S. economy. Solar taxes were imposed without consideration of their impact on energy prices for American households, U.S. employment, or the overall energy industry.
A more important question than whether foreign suppliers are attempting to circumvent solar tariffs is whether the Commerce Department and USITC should continue to be allowed to impose tariffs on solar goods, tin mill products, fertilizer, and other goods without first considering the impact of such tariffs on all Americans, not just the industry seeking protection.
At a time when many taxpayers are struggling with high energy prices – brought on, in part, by flawed government policies – Congress should not use the Congressional Review Act to increase taxes on American energy users. NTU urges you to reject H.J.Res 39.