Contact FreedomWorks

400 North Capitol Street, NW
Suite 765
Washington, DC 20001

  • Toll Free 1.888.564.6273
  • Local 202.783.3870

Press Release

    New Online Calculator Shows S. 852’s Asbestos Tax Burden

    08/29/2005

    This month, the Coalition for Asbestos Reform (C.A.R.) launched a web calculator that will allow businesses to estimate their share of the $140 billion in new taxes mandated by S. 852, the so-called “Fairness in Asbestos Injury Resolution Act of 2005,” scheduled for the Senate floor this fall. The calculator, at www.asbestosreform.org shows the potentially devastating financial effects the Specter-Leahy bill will have on hundreds of businesses across the nation.

    Under Specter-Leahy, companies will fall into one of six “tiers” based on their prior asbestos expenditures. Companies will then be slotted into three, four or five “sub-tiers” based on their FY2002 gross revenues. But while companies will be assigned levels of liability, they won’t know their exact asbestos tax until all of the companies in their tier have been identified. Even then, after the tiers are calculated, the Trust Fund Administrator has the ability to assess surcharges if revenues are not enough to fully fund the Trust Fund. This period of assessment and adjustment will likely drive the tax higher.

    Using C.A.R.’s Calculator

    C.A.R. is a group of smaller and medium sized businesses and their insurance companies committed to educating U.S. businesses and policymakers about the serious flaws in S. 852. The coalition mobilized in June to launch a major national campaign to explain the effect of the Specter/Leahy bill on hundreds of local businesses that face potential asbestos liability, most of whom are unaware of the devastating impact of $140 billion in new taxes S. 852 authorizes to finance the Trust Fund mandated by the bill.

    Companies can calculate their asbestos tax liability by visiting www.asbestosreform.org where they will be asked three questions:

    1. Are you in bankruptcy proceedings?
    2. What are your FY2002 revenues?
    3. How much have you, your affiliates and your insurance carrier paid in total asbestos costs through December 31, 2002?

    We expect the full Senate to vote on the S. 852 tax increase in September or October of this year, so the more businesses that understand the unfair distribution of the trust fund’s new asbestos tax, the better.