Taxing Plastic Bags

Officials in the city of San Francisco are considering a proposal to tax plastic grocery bags. Paper bags also would be taxed in fairness. According to a study by the city’s Environmental Department, plastic grocery sacks cause recycling machines to jam and litter the city streets. The 50 million plastic and paper grocery sacks used each year in San Francisco cost the city $8.5 million in cleanup and other costs, or about 17 cents per bag. The purpose for the 17 cent per bag tax would be to encourage people to reuse bags or turn to reusable bags – it is anticipated that stores, who would be responsible for paying the tax, would pass the cost onto shoppers.

Not everyone is thrilled with the idea. The American Plastics Council argues that the energy savings would be trivial, compared with other forms of consumption such as driving motor vehicles. The California Grocery Association argues that the tax would be a burden on consumers. I can see their point – a tax promoting recycling and resource conservation is the enemy of economic prosperity. In another light, it would be wise to consider carefully what we wish for, because a movement to a truly sustainable economy will probably involve terrible short-term economic dislocations. But it is still better than the alternative. Besides, we have enough perverse subsidies as is.