Ethenol companies and farmers actually do get subsidies while oil companies get tax cuts for exploration expenses.
Pray for America
posted on 05/13/2011 9:47:47 AM PDT
(What do you think of water boarding now, Obama?)
>>>Ethenol companies and farmers actually do get subsidies while oil companies get tax cuts for exploration expenses.
There is no subsidy for ethanol producers. 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.
There is also a tariff on imported ethanol. But that is essentially a tax taking in revenue, not a subsidy paying out benefits.
Corn farmers do get subsidies, but they got those prior to the recent boom in ethanol. In fact the demand from ethanol may actually reduce subsidies paid to corn farmers. In the past couple of years, market prices for corn have been sufficiently high that most of the corn subsidy resulted from crop insurance in areas where there were crop losses rather than from counter cyclical payments that are received when prices are low.
posted on 05/13/2011 11:54:31 AM PDT
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson