Ethanol subsidies
Looks like the lobbyists for Archer Daniels Midland pumped enough money into Capital Hill.
From
Politico:
Senate keeps ethanol subsidies
The Senate on Tuesday rejected, 40-59, a symbolic attempt to strike ethanol tax subsidies as Democrats are working on a deal to hold at least one vote on ethanol next week.
The amendment from Sen. Tom Coburn (R-Okla.) fell well short of the necessary 60 votes to invoke cloture and limit debate. Five Democrats supported the amendment and 12 Republican ethanol backers, largely from the Midwest, opposed it.
Coburn�s amendment would have repealed a 45-cent-per-gallon tax credit to blend ethanol in gasoline that is set to expire at the end of the year. It is estimated that the tax credit would be worth upwards of $6 billion if it continues the whole year. The amendment also would have repealed a 54-cent-per-gallon tariff on ethanol imports.
The tarriff is weird because Brazil is supposed to be our BFF for fuel -- we are subsidizing their oil development but we levy a tarrif against their sugar cane ethanol which is cheaper than our own corn ethanol. The tax credit goes to the fuel companies and not the farmers.
Perfect example of what is going wrong here, the poor get free gubbinment cheese, the big corporations get sweetheart deals and everyone in the middle gets the shaft...
Posted by DaveH at June 14, 2011 2:10 PM