The U.S. Senate is expected to vote on Tuesday, June 14th on repeal of the disastrous ethanol subsidies that are driving up the price of food and fuel. Unfortunately, some usually free-market senators have not yet committed to support repeal.
Ethanol currently receives triple protection: with a $6 billion per year tax subsidy, an import tariff and a usage mandate. Senators Coburn and DeMint have combined to offer two amendments that will end all three of these bad policies. The DeMint amendment would also repeal the death tax, an unfair double tax that is one of the most anti-growth features of our tax code.
The CBO has concluded that taxpayers are on the hook for $1.78 for every gallon of ethanol that replaces a gallon of gasoline, while even the EPA has concluded that ethanol subsidies have increased corn prices at least 8 percent. Even many green groups now oppose ethanol subsidies because they do nothing to improve the environment.
Yours truly,
Phil Kerpen
Vice President, Policy
Americans for Prosperity