Coburn and DeMint Amendments Are Bold Steps Toward Ending Corporate Welfare
Washington, D.C., June 13, 2011 - Billions of dollars in ethanol tax subsidies could at long last be axed by Congress, as the Senate on Tuesday votes on an amendment by Sen. Tom Coburn (R-Okla.) to terminate the ethanol tax credit and corresponding tariff by July 1.
Freedom Action supports enactment of Sen. Coburn's amendment. In addition, Freedom Action supports another amendment to be offered by Senator Jim DeMint (R-SC) that would end the federal ethanol mandate.
The Senate should take two bold steps this week toward ending corporate welfare by passing the Coburn and DeMint amendments, said Myron Ebell, President of Freedom Action. Archer Daniels Midland and other big companies have been on the gravy train for decades. It's time to end taxpayer subsidies and mandates that cost consumers at the pump and the grocery store.
The domestic ethanol industry currently enjoys a $0.45 per gallon Volumetric Ethanol Excise Tax Credit (VEETC), which currently costs taxpayers $5-6 billion annually, and a $0.54 per gallon protective tariff, which prevents lower-cost Brazilian ethanol from competing in U.S. markets. In 2005 and 2007, Congress enacted and then expanded a production quota for ethanol. Currently at 13 billion gallons, the mandate to use ethanol in transportation fuels is scheduled to rise to 36 billion gallons per year by 2022.
Freedom Action opposes all energy mandates and subsidies, including H. R. 1380, the T. Boone Pickens Earmark Bill that would subsidize the production and use of natural gas vehicles.
Freedom Action has sent an action alert to its members asking them to e-mail their Member of Congress in support of both amendments and will include those votes in its congressional vote rating.