[NC28203]

I’m not a supporter of the ethanol programs, but I do find it interesting the way that terminology gets used. One man’s subsidy is another man’s tax break.

There are actaully no subsidies (direct paymwents to ethanol producers) for ethanol. Congress has provided the motor fuel industry with a tax incentive for blending ethanol with gasoline in the form of 45 cents per gallon of ethanol tax credit known as the Volumetric Ethanol Excise Tax Credit. The tariff on imported ethanol is essentailly a tax taking in revenue, not a subsidy paying out benefits.

Removal of the programs would result in a tax increase resulting from the removal of the blenders credit. The removal of the tariff would be a tax cut, but as others have noted, we are currently a next exporter of ethanol.

[jjotto]

One man’s subsidy is another man’s tax break.

One man's subsidy is another man's investment!