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It's time to end the excessive subsidies for corn ethanol
Washington Post ^ | July 24, 2010 | Staff Editorial

Posted on 07/24/2010 4:59:23 PM PDT by neverdem

WHEN WASHINGTON starts handing out cash, it can be hard to stop. See, for example, the decades of subsidies the government has showered on the corn ethanol industry. The fuel was supposed to free America from its dependence on foreign oil and produce fewer carbon emissions in the process. It's doing some of the former and little of the latter. But corn ethanol certainly doesn't need the level of taxpayer support it's been getting. Lawmakers are considering whether to renew these expensive subsidies; they shouldn't.

The feds give companies that combine corn ethanol with gasoline a 45-cent tax subsidy for every gallon of corn ethanol added to gasoline. That's on top of a tariff on imported sugar cane ethanol from Brazil and federal mandates requiring that steadily increasing amounts of these biofuels be produced. The Congressional Budget Office this month estimated that, all told, the costs to taxpayers of replacing a gallon of gasoline with one of corn ethanol add up to $1.78. The tax incentives alone cost the Treasury $6 billion in 2009.

How about the environmental benefits? The CBO calculates that it costs a huge $750 to reduce annual carbon dioxide emissions by one ton using corn ethanol. And that figure relies on assumptions extremely favorable to the industry.

Not only are these subsidies expensive, but they are redundant...

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; Politics/Elections
KEYWORDS: cornethanol; energy; subsidies
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To: Ditter

Here is another URL, about mislabeling in foods.

http://www.truthinlabeling.org/nomsg.html


61 posted on 07/25/2010 2:16:01 PM PDT by larry hagedon (born and raised and retired in Iowa.)
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To: larry hagedon
Or do engines running on straight gasoline...GASP...also break down?????

Talk to the small engine repair shops, outboard motor repair shops, home generator shops and others.

In this area say find 100% gasoline.

With the cost of a minimum repair bill at $100 and repairs that can run $3,000 plus, that extra $0.30 per gallon does make good sense.

62 posted on 07/25/2010 2:17:16 PM PDT by TYVets
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To: RipSawyer

Weight and mixture.


63 posted on 07/25/2010 2:44:42 PM PDT by patton (Obama has replaced "Res Publica" with "Quod licet Jovi non licet bovi.")
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To: larry hagedon

Have it your way. I sure would like to see valid data re: dirty gasoline and attempts to clean it up. Keep in mind I am neither a petroleum engineer nor an environmental whacko, so I have a high level of distrust.

I’m gonna take a lot of convincing!

Just spent two + hours resurrecting my Yamaha EFI 2800 generator, which refused to run — drained old gasahol, refilled tank with premium, added Sta-Bil blue and a carb cleaner. Got it running on spray carb cleaner until FResh gas got to carb.

Last time I had it running, I had to leave choke on all the time, and it ran crappy. I had no idea that the gasahol was the problem. Runs now with the choke open.

BTW, if the stuff is so damn good, why is there a $.47 per gallon subsidy? I hate it that tax payers take it on the chin so corporations like Archer Daniels Midland can run up their balance sheet.

Get rid of the subsidies and the import duty ($.51/gallon) on ethanol, and then maybe we can have a debate.

BTW, where does one purchase E30 or E40? And why would one want to do so, particularly with an older engine?

Oh, my ‘65 GTO also experienced the same symptoms until I added Sta-Bil blue and FResh gasahol, which, except for race gas or aviation fuel, is all I can buy in Jacksonville.

AND, mixing ethanol gas and non-ethanol gas is a NO! NO! Creates a sludge that is a bitch to clean out.

I hate ethanol!


64 posted on 07/25/2010 4:37:51 PM PDT by Taxman (So that the beautiful pressure does not diminish!)
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To: larry hagedon

PS When I was in high school, we burned unleaded Amoco Premium (white gas) in our ‘57 Pontiac.

Was it dirty?

When we felt really racy, we put a tank of Sunoco 260 in the tank.

Was it dirty?


65 posted on 07/25/2010 4:40:28 PM PDT by Taxman (So that the beautiful pressure does not diminish!)
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To: Taxman

Yep, it sure was dirty, as all gasoline is.


66 posted on 07/26/2010 10:41:51 AM PDT by larry hagedon (born and raised and retired in Iowa.)
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To: larry hagedon

I’d really like to see some scientific evidence of that.

Can you direct me to a web site which will corroborate you assertion?

Thanks.


67 posted on 07/26/2010 10:43:33 AM PDT by Taxman (So that the beautiful pressure does not diminish!)
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To: larry hagedon

PS I thought that catalytic converters were supposed to “solve” the “dirty” gas problem?


68 posted on 07/26/2010 10:44:43 AM PDT by Taxman (So that the beautiful pressure does not diminish!)
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To: Taxman

[PS I thought that catalytic converters were supposed to “solve” the “dirty” gas problem?]

Yep, so did I.

Guess it didnt work somehow.


69 posted on 07/26/2010 12:00:41 PM PDT by larry hagedon (born and raised and retired in Iowa.)
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To: Taxman

[I’d really like to see some scientific evidence of that.

Can you direct me to a web site which will corroborate you assertion?

Thanks.]

I take it you mean the fact that gasoline is dirty. Of course, all of the additives from ethyl and lead to MTBE and ethanol, are or were added for the basic purpose of cleaning up the dirty combustion of gasoline and increasing the octane level.

Ethanol has the added advantage of cleaning up water and dirt in the fuel tank and lines.

There are many fuel line and injector cleaning gasoline additives available to buy in auto parts stores that are compounds of alcohol. Nearly all proprietary products that advertise their ability to clean up water are alcohol compounds.

You mention buying unleaded gasoline. When they started advertising lead free gasoline, there was a huge backlash of people that said unleaded gasoline would destroy their engines. It was supposed to be particularly lethal to lawn mowers and chain saws.

Most websites speak more to increasing octane than cleaning up dirty gasoline combustion.

Here Are a couple of URLs, I hope you find them helpful.

http://www.fuel-testers.com/fuel_additives_gas_treatments.html

http://www.runet.edu/~wkovarik/ethylwar/

http://www.ethyl.com/index.htm


70 posted on 07/26/2010 12:41:03 PM PDT by larry hagedon (born and raised and retired in Iowa.)
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To: Taxman

Ethanol is the favorite whipping boy now for any breakdowns in internal combustion engines. They did also break down before ethanol became mandated, but today, ethanol gets the blame.

E-30 to E-40 is a great blend, higher octane, much cleaner burning, I love it. Yes a few stations now carry it but most people mix their own by combining E-85 and E-10. It is a very rough and inaccurate way of doing it, but my car does very nicely at up to E-85.

The dirty little secret is that for nearly a hundred years gasoline has been enjoying high subsidies, designed by our politicians to keep pump prices low and voters happy.

Some people put gasoline subsidies at around 2 dollars a gallon, some make a strong case for as much as 15 dollars a gallon. Interestingly, most countries in the world have high gasoline subsides and they still have much higher pump prices than we do.

What we need to do is cut out all gasoline subsidies, then ethanol would sell like hotcakes, being much cheaper than gasoline. But we will not do that because it would be political suicide for politicians to eliminate subsidies and let gasoline float to its true costs.

http://www.nytimes.com/2010/07/04/business/04bptax.html?src=me&ref=general


71 posted on 07/26/2010 1:01:41 PM PDT by larry hagedon (born and raised and retired in Iowa.)
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To: TYVets

Ethanol is just the easy scapegoat to blame for engine breakdowns. In fact, ethanol keeps engines cleaner and running better with fewer breakdowns.


72 posted on 07/26/2010 1:05:23 PM PDT by larry hagedon (born and raised and retired in Iowa.)
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To: larry hagedon

1. I do not believe a word I read in the NY Times.

2. I believe you are one of these folks who have bought completely into the “green” revolution, and therefore, your opinions are biased against other solutions.

3. You referred me to the web site I referenced as my source for ethanol problems in my motorhome. Fuel testers is where I first learned of the detrimental effects of using gasahol.

4. I agree that subsidies adversely influence markets. That is why I advocate for the FairTax.

5. I really do not wish to continue this conversation. I have solved my problem.

FReegards


73 posted on 07/26/2010 4:38:24 PM PDT by Taxman (So that the beautiful pressure does not diminish!)
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To: larry hagedon
Ethanol is just the easy scapegoat to blame for engine breakdowns. In fact, ethanol keeps engines cleaner and running better with fewer breakdowns.

Some outboard motor manufacturers disagree with your "facts".

Outboard motors can range from $2,000 for a small fresh water motor to $20,000 each for 300 HP motors used in salt water. Many salt water craft use two motors for safety sake for a total of $40,000.

After plunking down 40 grand you get a Owners Manual that says:

(1) Gasoline containing alcohol {methanol (methyl), or ethanol (eithyl)}, acetone or benzene, may cause:

*wear and damage to bearings, cams, piston(s), piston rings.

*Corrosion of metal parts.

*Deterioration of rubber parts or plastic parts.

*starting, idling and other engine performance problems.

(2) Do not use gasoline that contains more the 10% ethanol or more than 5% methanol.

(3)Damages resulting from the use of gasoline's that contain alcohol ARE NOT COVERED under the limited warranty.

Your loyalty to your home corn growing state of Iowa is admirable, but no consilation to me if I am dying of hypothermia in 50 degree water because the outboard won't run.

74 posted on 07/27/2010 11:16:22 PM PDT by TYVets
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To: Cuttnhorse
Not that I'm doubting you, but do you have a reference for this little tidbit of info???

Specialty denatured alcohols are denatured alcohol formulations intended for a particular industrial use, containing denaturants chosen so as not to interfere with that use. While they are not taxed, purchasers of specialty denatured alcohols must have a government-issued permit for the particular formulation they use and must comply with other regulations.

75 posted on 07/28/2010 5:03:30 PM PDT by neverdem (Xin loi minh oi)
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A subsidy can, at "worst", keep a floor price under a product, while encouraging production, meaning it becomes price stable. A subsidy would not, and could not, drive up the price.
76 posted on 07/29/2010 4:28:17 PM PDT by SunkenCiv ("Fools learn from experience. I prefer to learn from the experience of others." -- Otto von Bismarck)
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To: neverdem

As long as Iowa is the first state in the Presidential primary season, ice hockey will be played in Hell before the ethanol subsidies stop.


77 posted on 07/29/2010 6:24:26 PM PDT by Tolerance Sucks Rocks (Michelle Obama: the woman who ended "Diners, Drive-ins and Dives.")
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To: CORedneck
Don’t forget, get rid of the subsidies for High Fructose Corn Syrup (HFCS). Encourage the use of cane sugar over HFCS!

Again, Iowa Caucuses. Big obstacle there.

78 posted on 07/29/2010 6:35:10 PM PDT by Tolerance Sucks Rocks (Michelle Obama: the woman who ended "Diners, Drive-ins and Dives.")
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To: TYVets

I dont know why you would buy a $20,000 boat motor with plastic fuel line parts. I wouldnt.

As I said, this is just an excuse to void the warranties. Save millions of bucks that way.


79 posted on 10/05/2010 3:26:03 PM PDT by larry hagedon (born and raised and retired in Iowa.)
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To: Taxman

Yeah, how bout that?


80 posted on 10/05/2010 3:28:02 PM PDT by larry hagedon (born and raised and retired in Iowa.)
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