Congress Ends Taxpayer Funding Of Ethanol Subsidies


 .... two of the most wasteful subsidies ever to clutter the Internal Revenue Code went out with the old year. Congress declined to renew either the 45-cent-per-gallon tax credit for corn-based ethanol or the 54-cent-per-gallon tariff on imported ethanol, so both expired Dec. 31. Taxpayers will no longer have shell out roughly $6 billion per year for a program that badly distorted the global grain market, artificially raised the cost of agricultural land and did almost nothing to curb greenhouse gas emissions. A federal law requiring the use of 36 billion gallons of ethanol for fuel by 2022 still props up the industry, but the tax credit’s expiration is a victory for common sense just the same.
Comment: Image source: Congress Actually Ends Taxpayer Funding Of Ethanol Subsidies. Subsidies skew the free market and introduce inefficiencies. Other examples: the $7,500 electric vehicle tax credit (mentioned in the Wash Post editorial) that brought the Volt to the market; cash for clunkers, mortgage interest rate deductions, public transportation subsidies, etc.

1 comment:

  1. Should be good for my company. Hopefully make some supplies cheaper.


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