Posted on 06/16/2011 1:25:44 PM PDT by bigbob
The Senate voted Thursday to repeal a $6 billion tax credit for ethanol producers, a move that could signal the end of some federal subsidies as part of an eventual budget and debt-ceiling compromise.
A bipartisan group of senators—40 Democrats and 33 Republicans—joined together in a 73-27 vote to support an end to the subsidy. The subsidy gives refiners a 45-cent-a-gallon tax credit for blending ethanol into gasoline and has been a factor behind higher corn prices in recent years. Sen. Chuck Grassley (R., Iowa), a longtime supporter of the credit, objected to the measure.
The U.S. ethanol industry is protected by a tariff of 54 cents a gallon on imported ethanol and that, too, would end under the Senate measure.
The ethanol provision was added to unrelated legislation that would renew a program directing federal funding to deprived parts of the country to help local governments attract private investment. Even if approved by the Senate, the legislation isn't expected to be taken up by the House, possibly limiting the vote to symbolic significance.
(Excerpt) Read more at online.wsj.com ...
Now, where is that Republican-controlled House of Representatives?
--that should answer your question---
I’m actually surprised they would do this.
Interesting. Probably bait for the GOP.
Hope it passes to be honest.
Since it is an amendment to a bill not expected to make it, it like ethanol is just another scam.
The real vote, on a stand-alone bill failed, with all Democrats opposed. Don’t blame the House Republicans for the demise of this one: it was only passed by Democrats because they knew that the House Republicans would never pass the bill it was attached to. If it did, you can bet your last penny that the Senate Democrats would strip the bill of the ethanol subsidy removal.
The cynical would say this was just a safe way for some Senators to show they voted to kill it, but doggone it, just didn’t happen. But look at Coburn and some others who are saying this will happen, eventually.
I expect right now Obama would veto anything that might cost Democrat votes.
Is it safe to say that Governor Palin’s statement on her tour may have influenced progress on this?
The farmers play the market on corn....They might get hurt...Have to go talk to my buddy to see what would happen. This is “refiners”...so I don’t know.
But the requirement to add ethanol to gasoline still remains.
Total 2010 campaign donations to Grassley from the agricultural industry: $193,200.
Grassley is the #2 recipient of agricultural industry money and the #3 recipient of alternative energy industry money.
I filled my car gas tank and noticed that ethanol was 5¢ per gallon cheaper. Lets see how it fares in the free market without the 45¢ per gallon subsidy.
By the way, that’s the first gas station I have seen in our area, in years, that even sells regular gasoline, I’ll be using it exclusively from now on.
Maybe I'm misunderstanding what you mean but I bought a tank full of regular gasoline two days ago, 5¢ per gallon more than the ethanol mix.
Is it safe to say that Governor Palin’s statement on her tour may have influenced progress on this?
I believe that some states do require it I know CA is working on it.
From another article on the subject in WSJ. Ethanol Suffers Rare Loss in Senate
Thursday's vote doesn't by itself doom federal support for the corn ethanol industry. The House is expected to reject the repeal as unconstitutional because tax bills must originate in that chamber, and the White House opposes it.
You would think that the old Constitutional provision about tax bills originating in the House would have given up the ghost after the Obama Care bill.
I hope it passes also, corn alcohol should be drunk not burned to power cars.
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