Friday, June 10, 2011

Senate to Vote on Ethanol

The US Senate is scheduled to vote Tuesday on an amendment that would eliminate a credit for ethanol blenders as well as a tariff on imported ethanol by July 1, reports Platts.

The amendment is unlikely to pass and is designed more to allow certain Senators to peacock to their constituents that they voted against the "subsidy". Since a tax credit is a tax cut, those in favor of lower taxes should be in favor of this tax credit and should be calling for more tax credits across the board.

As for tariffs, they are all bad.

The amendment is being offered by Senator Tom Coburn, Republican-Oklahoma, who earlier in 2011 introduced a bill to eliminate the 45 cent/gal volumetric ethanol excise tax credit as well as the 54 cent/gallon tariff on imported ethanol.


  1. Sure, get rid of the tariff on ethanol imports. But do not pay our farmers to burn our country's crops! We might as well hire marauders and give them the cash, er, refundable tax credit. What is the difference?

  2. One more thing, since the ethanol percentage in gasoline is mandated, the demand for ethanol will be extremely inelastic. Any decline in government subsidies for ethanol will be made up for in a higher ethanol price that will ultimately be borne by drivers paying higher prices for gasoline. Is that not appropriate?

  3. Don't forget PEOPLE you who voted for anyone in office that supports this ethanol fiasco is to blame! It does matter who you vote for! Get a clue AMERICA!!!!!