Posted on 06/15/2008 2:31:29 AM PDT by AdmSmith
In 2007 this subsidy cost the American taxpayer $300 million, and it’s projected to cost the American taxpayers $600 million next year,” said Rep. John Shadegg, R-Ariz.
The scam — as Shadegg and others call it — is known as “splash and dash.” It stems from an existing $1 subsidy for every gallon of biodiesel fuel blended with regular diesel in the United States.
Here’s how it works:
Biodiesel is produced abroad using South American sugar cane or Asian palm oil and shipped to the United States, where it’s blended with just a “splash” of regular diesel.
A typical tanker-load of about 9 million gallons of biodiesel requires just 9,000 gallons of American diesel to make it qualify for the subsidy. But every gallon in the shipment garners a buck. The ship then makes a "dash" for Europe, where its fuel is sold below market rates.
That means each tanker-load that makes the dash nets importers about $9 million dollars in tax credits from the IRS. Lawmakers have estimated its cost to Americans at tens — or even hundreds — of millions each year.
(Excerpt) Read more at foxnews.com ...
That means each tanker-load that makes the dash nets importers about $9 million dollars in tax credits from the IRS. Lawmakers have estimated its cost to Americans at tens -- or even hundreds -- of millions each year.Tax dodge. Thanks AdmSmith.
Oil companies spend more on taxes than on oil supply development
American Thinker | June 13, 2008 | Christopher Alleva
Posted on 06/13/2008 1:25:37 PM PDT by neverdem
http://www.freerepublic.com/focus/news/2030749/posts
This author has confused biodiesel with ethanol. Ethanol is what is produced with sugar cane. The blender's credit is a lot lower for ethanol than it is for biodiesel, but this article is only talking about biodiesel, which is made from soybeans here typically and from oil palms where they can grow those.
Has anyone investigated the legilative history of this subsidy? Someone put into a law that 0.1% American production was sufficient to make the entire load eligable for a $1/gallon subsidy. That Congressman is either stupid or crooked. I would like the name for that person.
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