>>>Can anyone explain how cutting a subsidy is a tax increase?
Congress has provided the motor fuel industry with a tax incentive for blending ethanol with gasoline in the form of 45 cents per gallon of ethanol tax credit known as the Volumetric Ethanol Excise Tax Credit.
I don’t view the termination of a selective subsidy to be a tax increase. Maybe for those affected, it is. But not to the taxpaying public at large. To me it’s just a return to the normal status quo where they are now being taxed just the same as everyone else.