Tim Carney of the Washington Examiner has a great piece looking at the utterly indefensible panoply of ethanol subsidies and handouts that screw consumers and taxpayers in order to line the pockets of the politically powerful. Unfortunately, several senior GOP lawmakers have unseemly ties to the lobbyists for the industry. So this is a test, but don’t expect a passing grade.
Ethanol fuel (especially ethanol distilled from corn) is subsidized in dozens of ways by governments at all levels. Two of the longest-running subsidies — a 54-cent-per-gallon tariff on imported ethanol, and 45-cent tax credit for every gallon blended with gasoline — expire on Dec. 31, making them a top priority for industry lobbyists during the lame-duck session. …In recent years, Americans have learned about the downsides of ethanol subsidies. The 2005 and 2007 energy bills mandated the use of ethanol, igniting a corn boom, which crowded out other crops, contributing to spikes in food prices. Ethanol was even blamed for tortilla riots in Mexico. Growing and distilling ethanol uses immense amounts water (contributing to river and aquifer depletion) and energy (some scientists argue that more energy goes into making a gallon of ethanol than is contained in that gallon). The added corn demand means more fertilizer production and use, adding to harmful runoff, which is blamed for “dead zones” in the Gulf of Mexico that choke out aquatic life. There are plenty of policy reasons to kill ethanol subsidies, but historically, a powerful lobby has kept them alive. And while the GOP talks about free markets, Republican lawmakers are cozier with the ethanol lobby than Democrats are. Republicans raised more than Democrats from Poet, the nation’s largest ethanol maker. Former Republican Rep. Jim Nussle of Iowa is now the president of Growth Energy, a leading pro-ethanol lobby. Presumptive incoming House Ways & Means Chairman Dave Camp has long supported ethanol subsidies, as has Finance Committee ranking member Chuck Grassley. Republican coziness with corn growers and ethanol distillers could outweigh sound policy considerations.
[…] groups and farmers supporting ethanol (a back-door handout for big […]
[…] groups and farmers supporting ethanol (a back-door handout for big […]
[…] Trump isn’t the only Republican who is bad on this issue. Indeed, the GOPers who support free markets – such as Rand Paul and Ted Cruz – may be […]
Didn’t California tell us ethanol was far better for the environment than evil gasoline?
[…] about the way big agri-businesses rip off consumers with the ethanol […]
[…] P.S. I’m not being partisan. Republicans are quite capable of supporting very stupid policies in exchange for votes or campaign contributions. Just look at the GOPers who support the Export-Import Bank, Fannie-Freddie subsidies, or ethanol handouts. […]
[…] specializes in this kind of cronyism. The Export-Import Bank, ethanol handouts, TARP, and Obamacare bailouts for big insurance firms are a few of my least-favorite […]
[…] specializes in this kind of cronyism. The Export-Import Bank, ethanol handouts, TARP, and Obamacare bailouts for big insurance firms are a few of my least-favorite […]
[…] about the way big agri-businesses rip off consumers with the ethanol […]
[…] And so long as politicians aren’t showering them with bailouts, subsidies, protection, or handouts, that means they compete to provide us ever-better goods and services at ever-more-affordable […]
[…] of big companies use the Export-Import Bank to obtain undeserved profits. How about the way big agri-businesses rip off consumers with the ethanol scam. Don’t forget H&R Block is trying to get the IRS to drive competitors […]
[…] favors in the tax code for ethanol also deserve scorn and disdain, and I’m also not a fan of the charitable deduction or the ways […]
[…] favors in the tax code for ethanol also deserve scorn and disdain, and I’m also not a fan of the charitable deduction or the […]
[…] bottom line is that ethanol handouts are one of the most notoriously corrupt subsidies that are dispensed by […]
[…] bottom line is that ethanol handouts are one of the most notoriously corrupt subsidies that are dispensed by […]
[…] in the tax code deprive the government of tax revenue. Even the most egregious of loopholes, such as ethanol, have this redeeming feature. This is why loopholes should only be eliminated as part of an overall […]
[…] in the tax code deprive the government of tax revenue. Even the most egregious of loopholes, such as ethanol, have this redeeming feature. This is why loopholes should only be eliminated as part of an overall […]
[…] is a particularly evil handout, encompassing regulatory mandates, special tax preferences, trade barriers, and other forms of […]
[…] about the waybig agri-businesses rip off consumers with the ethanol […]
[…] about the way big agri-businesses rip off consumers with the ethanol […]
[…] But many of those same companies will then turn around and try to manipulate the system for subsidies, protectionism, and corrupt tax loopholes. […]
[…] these new toys, your kids will enjoy hours of fun as they learn to use mandates, protectionism, bailouts, and pork to obtain undeserved […]
[…] we got some good parody from that farce), the corrupt H&R Block collusion with the IRS, and the sleazy ethanol handouts to […]
[…] Big Corn may get an even better deal than Big Sugar. […]
[…] entire ethanol industry, meanwhile, is dependent on favors from Washington, and Fannie Mae and Freddie Mac were created by the […]
[…] It’s very understandable for people to get nauseated when we see things such as lobbying for corporate welfare or campaign contributions being given in exchange for things such as ethanol subsidies. […]
[…] I’m not sure this is humorous. Whether we’re looking at ethanol, Solyndra, or other green-energy scams that promote corruption and undermine the economy, this is […]
[…] It’s very understandable for people to get nauseated when we see things such as lobbying for corporate welfare or campaign contributions being given in exchange for things such as ethanol subsidies. […]
[…] And let’s not forget examples of sleaze and corruption such as the Solyndra scam and the ethanol racket. […]
[…] are some corrupt loopholes in the corporate income tax, to be sure, such as the ethanol credit for Big Ag and housing credits for politically well-connected developers. But if you look at the […]
[…] concern is that many politicians don’t understand the difference between a tax loophole such as ethanol and a tax penalty such as double taxation, so their version of tax reform could make bad policies […]
[…] is that many politicians don’t understand the difference between a tax loophole such as ethanol and a tax penalty such as double taxation, so their version of tax reform could make bad policies […]
[…] the government allows a company to have special tax breaks that reduce tax liabilities (such as the ethanol credit) and sometimes the government makes a company overstate its profits by not allowing it to fully […]
[…] the government allows a company to have special tax breaks that reduce tax liabilities (such as the ethanol credit) and sometimes the government makes a company overstate its profits by not allowing it to fully […]
[…] I’ve specifically come out against tax preferences for ethanol, housing, municipal bonds, charity, and state and local […]
[…] the government allows a company to have special tax breaks that reduce tax liabilities (such as the ethanol credit) and sometimes the government makes a company overstate its profits by not allowing it to fully […]
[…] definition of taxable income. If there are lots of corrupt loopholes — such as ethanol — that enable some income to escape taxation, then the “effective” tax rate might […]
[…] the government’s definition of taxable income. If there are lots of corrupt loopholes — such as ethanol — that enable some income to escape taxation, then the “effective” tax rate might be rather […]
[…] I’m not sure this is humorous. Whether we’re looking at ethanol, Solyndra, or other green-energy scams that promote corruption and undermine the economy, this is […]
[…] And let’s not forget examples of sleaze and corruption such as the Solyndra scam and the ethanol racket. […]
[…] the government’s definition of taxable income. If there are lots of corrupt loopholes — such as ethanol — that enable some income to escape taxation, then the “effective” tax rate might be rather […]
[…] the government’s definition of taxable income. If there are lots of corrupt loopholes — such as ethanol — that enable some income to escape taxation, then the “effective” tax rate might be rather […]
[…] definition of taxable income. If there are lots of corrupt loopholes – such as ethanol – that enable some income to escape taxation, then the “effective” tax rate might […]
[…] matter if the additional revenue is generated by eliminating a special tax break (such as for ethanol). If politicians wind up having more money to waste, that is a tax […]
[…] I’ve written about ethanol subsidies before, noting that they rank as one of the most corrupt and inefficient special-interest programs in Washington. By endorsing ethanol, Romney demonstrates that he is a profoundly flawed candidate. […]
is good ? :l