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 ...
Our congress at work.......Term limits; PLEASE!
ping
I suspect that by now, that figure has increased considerably.
Plus, that does not take into account the huge subsidy that we also pay to the deathanol producers.
Congress has legislated the American public into a surreal world of energy dependence on foreign governments; they have successfully crippled the only partially "free market" economy in the world.
And now, the law of "unintended consequences" takes effect with soaring food prices world-wide.
Bowing to the "greens" will eventually starve millions to death, thus my name for mandated dependence on ethanol: DEATHANOL.
So the oil future traders get rich and stick it to you. Many here support the concept.
The disgusting thing is that they know which companies are doing it and yet they still let them get away with it. Do you really need to pass another law just to stop a blatant scam?
are any companies named specifically ?
Speculators are a symptom of the problem, not the problem. Speculators can only profit in a market that has inelastic of supply.
By clinging to our pathetic 1970s era Energy policy of "conservation, not consumption" we have allowed the supply in the Oil market to get so inelastic the Future traders can game it. Fix the supply problem and you fix the speculation problem.
But I know, too difficult for the Dincon whiners around here to grasp that complex a notion.
Thanks, there's a lot of just plain old common sense in all that.
Cut your whining about people making money. Nobody here supports people getting rich off of a dumb government program, and we don't mind futures traders making money in the futures markets.
You are a whiny liberal who hates everyone who does better than you, go to DU were you can hang out with your comrades.
Why not just end the stupid program that creates the opportunity for the scam? Scam's like this only work when the government intervenes in the marketplace. To stop the scam, stop the bad government policy.
It’s almost time for pitchforks and torches.
This is ridiculous. We need to march on DC and threaten these idiots with an uprising.
Exactly. That’s perfect common sense, but somebody’s getting greased to perpetuate this theft of our money.
Poor little kid take your play things and go home.
NO, I have no problem with people buying and selling oil, the way to fix it is for people to pay for what they buy at the close of business, and have a set date of delivery with fright prepaid. No problem, the market will function properly. You buy it, you pay for it, you take delivery, that is the way most business transactions are done. When you have ownership and a product to sell you can sell it from your inventory.
I know, like most of our resident Leftists pretending to be “betrayed Conservatives” you aren’t intrested in fact and real life solutions, you just want something to whine about.
And no one elected you to define a conservative.
No specific company named yet. Probable later after this:
“Americans cannot afford Congress’ negligence. I am today introducing the Splash and Dash Correction Act, so only fuel to be consumed in the United States would be eligible for the tax credit, effectively closing this loophole before more American tax dollars are wasted on subsidies for foreign fuel producers.”
http://johnshadegg.house.gov/News/DocumentSingle.aspx?DocumentID=87786
Still getting worse mileage with all fuel that has ethanol added to it.
Have my mileage records back to Aug 1980 when I bought the station wagon, and back to 1986 when I bought the dually truck. Ethanol is killing my mileage. Got 6-6.8 MPG with truck hauling horse trailer in 1988. Now getting just a tick over 5 with same truck and new motor...
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