Senate Votes to Repeal Ethanol Subsidy
June 17, 2011 2:00 PM
comment(s) - last by
39% of all corn produced in the U.S. goes to ethanol production
House to vote next
Lawmakers in Washington are working hard to write and pass laws that would have fuel efficiency standards in the U.S. changing drastically in coming years. While some in Washington support the new standards for vehicle efficiency, others oppose the standards. Along with mandating better fuel economy across a carmakers fleet, Washington is also seeing green and renewable fuel alternatives for vehicles.
In the U.S., ethanol has been added into the fuel we run in vehicles for years. Ethanol is as high as 10% in fuels today and some that are against ethanol, which is derived from corn, claim that the biofuel is increasing the price of some food items in America. A report published by the GAO claims that the use of ethanol has driven the cost of some food items up as much as 20%.
With all of Washington in cost cutting mode in an effort to shore up the federal budget lawmakers are looking at everywhere money can be saved. One place that some in the Senate want to save money is by repealing the subsidy on ethanol. The
Thursday 73-27 to end a $0.45 per gallon tax credit on ethanol-blended gasoline starting on July 1. According to those that support the repeal, the subsidy cost taxpayers $5.6 billion last year.
Growth Energy, and ethanol association, CEO Tom Buis said, "The Senate missed an enormous opportunity to take real action on deficit reduction and energy policy when it failed to put oil subsidies and giveaways to the same test as ethanol."
On the other side of the coin, Kate McMahon coordinator of biofuels campaigns for Friends of the Earth said, "Senators scored a win for the public and for the environment by voting to end this $6 billion giveaway." She continued saying, "[the Senate delivered a message] that the ethanol industry's days of living high off the taxpayers' hog have come to an end."
The effort to end the ethanol subsidy now goes to the House for voting. White House spokesman Jay Carney says that the Obama administration supports a reduction in the ethanol subsidy, but does not support a full repeal. Some claim that 39% of the corn produced in the U.S. is currently going into fuel tanks. With the costs to reach the
regulations for fuel economy reaching nearly $10,000, some automakers are calling for the removal of ethanol from gasoline. Ethanol is renewable and greener than petroleum fuel, but reduces fuel economy.
This article is over a month old, voting and posting comments is disabled
RE: Good riddance.
6/19/2011 7:12:59 AM
All tax revenue goes into the general fund and is dispersed according to who lobbies the hardest for the most money.
Here in NC there's a yearly property tax just to have a car on the road... So not only do you have to pay tax, tag and processing when you buy a car, you also have to pay for registration, inspection, and then this tax. They claim its to help the roads but according to their little pie chart that they put on the bottom of the bill (which is bs of course) 65% of it goes to education and only 0.002% of it goes to the road. Yet we have a gas tax to "fix the roads" and a state lottery to "fund education" but we still have to pay this property tax.... oh yeah cause the government can never do with less of our money. Now you know why people have swiss bank accounts.
RE: Good riddance.
6/19/2011 4:04:01 PM
Now you know why people have swiss bank accounts.
Yeah that's another overlooked piece of the pie the Heritage Foundation overlooks when it talks about how high tax rates are for the rich.
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
Report Claims Cost to Hit 62 MPG by 2025 Would Add $10K to New Vehicles
June 15, 2011, 1:34 PM
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Most Popular Articles
SanDisk's 200GB microSDXC Card Turns Smartphones Into Enviable PMPs
June 26, 2015, 2:02 PM
Windows XP, Vista Users Can Get Free Windows 10 Upgrade Thanks to Loophole
June 23, 2015, 2:23 PM
SpaceX Falcon 9's Seventh Supply Mission to ISS Ends w/ Fiery Stage 1 Explosion
June 28, 2015, 1:10 PM
U.S. Navy Spends $9M USD to Cling to Windows XP, Office 2003
June 24, 2015, 2:03 PM
F-16 Schools Trillion-Dollar F-35 in Mock Combat, Fleeing is Best Option Pilot Admits
July 1, 2015, 5:53 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information