"Coalition for E85" Wants a New Tax Break for Ethanol
October 18, 2011 1:01 PM
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E85 will be much more expensive than normal fuels without a new tax credit according to the coalition
The tax rebate on ethanol fuels is set to expire at the end of this year. This will vanquish the tax credit that allowed ethanol producers in the U.S. to export as much or more of the fuel to other countries than was used in American fuel tanks. Steven Rattner stated in a piece written for the
, “Because of the subsidy, ethanol became cheaper than gasoline, and so we sent 397 million gallons of ethanol overseas last year. America is simultaneously importing costly foreign oil and subsidizing the export of its equivalent.”
exporting of ethanol
is one of the reasons the tax break on ethanol is ending.
With the deadline looming for the tax credit, a coalition is forming to get federal tax law amended to allow E85 to get a tax cut. The new group will be called the Coalition for E85 and it is specific in that it isn't out to get the tax credit back for E10. The coalition will let that tax expire with no fight from its members, but it wants the E85 blend to gain a new tax cut or the coalition warns the days of E85 might be numbered.
The blenders that make E10 fuel that is in wide use, and is a mix of 10% ethanol and 90% unleaded are getting a 4.5-cent-per-gallon tax credit. E85 is getting a credit of 38.25 cents per gallon under the Volumetric Ethanol Excise Tax Credit or VEECT. This is the tax that expires in December.
What the coalition is seeking is a change that would allow the E85 blend to receive the Alternative Fuel Credit (AFC). E85 was excluded from the AFC originally to keep it from being able to qualify for both the VEECT and the AFC credits. With the VEETC being discontinued, the makers want E85 to now get the AFC credit to allow the E85 fuel to maintain closer price parity with normal fuels for consumers that drive Flexi Fuel Vehicles. Flexi Fuel Vehicles or FFVs are able to burn regular gasoline and E85.
The coalition is trying to raise $75,000 to hire a Washington lobby group to speak on its behalf.
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RE: Awww poor E85
10/18/2011 7:02:09 PM
Those "essentials" were available to all. Those living in rural areas simply needed to pay the fair market value for the services to be extended to their doors. All the government did was mandate rural service and then subsidize the that rural service at the expense of existing customers.
Sorry, but I must rant.
Why does government get to deem electric and phone service essential?
Because our society reached to point where political power began to usurp capitalism and competitive edge gave way to political influence.
Ever since then, our society has continued to allow crony-capitalism to invade our government. Both sides are guilty, but only one side can turn the course.
The Democratic parties platform is primarily supported by the poor. Entitlement programs create a society where the poor must vote for those that would support entitlement programs or risk reducing their own standard of living. Since the poor can't support the cost of political machine, democrats must garner financial support by promising favoritism by using crony-capitalism to pick winners like Solyndra.
The Republican parties platform is primarily supported by middle and upper class voters. Republicans have been guilty of using crony-capitalism to support their political machine as well. Also, choosing winners by targeting subsidies and regulation has helped generate more middle and upper class voters. But, for the Republicans this is counter productive. Because, even well intended regulations and subsidies are not as effective as true free market capitalism for generating wealth. As such, the Republicans must take a laissez-faire approach to governing if they hope to successful. Any other approach is counter productive and only leads to less prosperity which in turn leads to greater support for the Democratic parties entitlement programs.
The Tea-Party, and even occupy Wall St people if they listen to the Tea Party and learn a little, is the grass roots movement that is needed to help push politicians back to supporting a pure capitalism, limited government society. It's really our only chance.
RE: Awww poor E85
10/19/2011 11:35:36 AM
Yep - a more capitalistic, limited government society worked so well in the 19th century. We should get right back to that!
Maybe if your name is Carnegie or Rockefeller (or Gates or Ellison today) that sounds ok - but for "the 99%" it really ain't such a great idea...
RE: Awww poor E85
10/19/2011 1:52:45 PM
Drinking the OWS Koolaid I see.
Carnegie, Rockefeller, Gates, Ellison et al are exactly what the 99% need. All of these people created wealth and not just for themselves. How many people have each of these employed in well paying jobs? Using just Microsoft as an example... how many poor oppressed workers can you find working for Microsoft? I see tens of thousands of well paid middle class employees that owe there standard of living to employment at Microsoft.
Now Marxism and socialism... how many Chinese died under Mao to generate the "wealth" of that society? How many workers in China now enjoy a lifestyle like your typical Microsoft employee (other than the ones employed by Microsoft in China)?
“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs
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