December 9th, 2010, Fairfax, VA—Americans for Limited Government (ALG) President Bill Wilson today issued the following statement responding to reports that the tax deal extending current tax rates may include subsidies for corn ethanol producers:
"If reports emerging that the vaunted Obama tax compromise may include subsidies for the ethanol industry are true, Republicans should walk away from this 'compromise'. This would be the first bauble on the Christmas tree, and if this deal simply turns into a boondoggle of special interest favors and corporate welfare subsidies, it needs to die. That means no deal.
"The $56 billion unemployment extension is bad enough. So is underfunding Social Security by $120 billion. Their inclusion in the deal without offsetting budget cuts puts that much more pressure on the nation's dire fiscal situation, with a $13.8 trillion national debt that is spiraling beyond control. They mean that, if passed, Congress will have to cut that much more spending out of the budget come January to balance the budget.
"The immediate dangers to this weak economy posed by hiking taxes across the board are very real. Economists on both sides of the political aisle are predicting a double-dip recession if taxes rise now. However, that is not an excuse for lawmakers to hold the economy hostage to score a few more special interest favors before the year ends. That is not what the American people voted for in November.
"This bill is becoming a monster, and Congress may after all be better dealing with tax rates in January retroactively, especially if congressional leadership insists on carrying on business as usual with handouts, kickbacks, and other favors. These corn ethanol subsidies and any other special interest favors lawmakers have in mind need to be removed, or else the deal will justly not earn the support of the American people."