Feinstein, GOP senator (Coburn) fight subsidies for ethanol

[Newsjock]

Source: San Francisco Chronicle

Democratic Sen. Dianne Feinstein of California and Oklahoma Republican Sen. Tom Coburn have joined forces with Tea Party activists in an attempt to kill $6 billion a year in ethanol subsidies, taking on the corn lobby and anti-tax crusader Grover Norquist.

... The government pays refiners 45 cents a gallon through a tax credit to refine ethanol. An additional 54-cents-per-gallon tariff blocks imports of less-expensive and more energy-efficient sugar-based ethanol from Brazil.

Feinstein and Coburn are sponsoring an amendment to eliminate the subsidies and promise to attach it to a bill next week that would reduce oil and gas subsidies. Feinstein said the subsidies are no longer affordable and that the tariffs actually increase gasoline prices because it's cheaper to import oil than to import ethanol.

... On Tuesday, the Tea Party Patriots group, which opposes taxes and excessive government spending, said on its Facebook page: "When the Left and the Right agree ... amazing things can happen."

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/05/07/MN5N1JCFTV.DTL&tsp=1

[OKNancy]

1. I couldn't figure out why Norquist would be against this

so I'm glad I read the whole article.
It seems that Norquist is accusing Coburn of breaking his pledge not to raise taxes and he says ending the tax break is a form of tax increase for corn growers. That sure is twisted IMO.

[Scruffy1]

2. Neither state grows much corn.

Easy points for them. Not so easy in Iowa, Minnesota, Illinois, etc.

[robcon]

4. Well. if it's politically impossible for about 10 states (20 Senators) to vote against this,

the rest of the country/Senate should end this stupid subsidy.

[OHdem10]

6. Norquist sees taking away subsidies as raising taxes.

Norquist the second most powerful man in America.

Note Coburn is the first Republican ever to stand up
Norquist on this tax pledge bit.

When you think about it Norquist controls the budget.
Republicans cannot run for office without taking the
pledge. They cannot raise taxes in office.

[valerief]

3. Are they also against oil subsidies? nt

[former9thward]

5. According to the OP this is an amendment to a bill to reduce oil and gas subsidies.

So the answer is yes. Ethanol is corporate welfare at its worst.

[PuffedMica]

7. Paying a subside to enable the burning of food in our cars is stupid

If ethanol was going to be a viable substitute for motor fuel, it would be profitable business today not requiring a Government subside. Compounding the marketing economics of turning food into fuel, is the undesirable side effects of chemical damage to rubber seals. This chemical seal damage precludes ethanol transport via existing fuel pipelines, requires storage in dedicated tanks, and damages the carburetor in older engines.

This is a classic case of taking a good idea and then ruining it by employing the Government to scam money from the unwilling public and funneling the profits to a few.

Pure research into clean, renewable energy sources will serve us much better than diverting much needed money into the failing ethanol industry.

[Qutzupalotl]

8. Corn ethanol is inefficient compared to some other biofuels.

Consider the amount of wasted plant matter and the energy used to harvest and process. I don't see why we're subsidizing corn at all, or petroleum for that matter.

Canola oil, on the other hand, is quite promising as a biofuel. Here in western Oregon, SeQuential Biofuels is already growing it and selling it as fuel.

[No Elephants]

9. Who will make money on importing ethanol from Brazil?