The time to end the government powered ethanol subsidy has come… and gone… multiple times. It’s an expensive waste of money, and a GAO report confirms that if it is left unchanged, the
… annual cost to the Treasury in forgone revenues could grow from $5.4 billion in 2010 to $6.75 billion in 2015.
The government has tried to promote the growth of ethanol since the Energy Tax Act of 1978. Additional waste comes from the renewable fuel standard which:
requires overall transportation fuels in the United States to contain certain volumes of biofuels…
So not only has Congress passed legislation that forces consumers to give their gas money to ethanol companies, but also they provide a tax credit to these same companies, allowing them to “double dip” in your pocket.
Even Al Gore now opposes this ludicrous subsidy. Today a group of 90 organizations from across the political spectrum (from the American Conservative Union to MoveOn.org) sent a letter to congress, begging:
…allow the refundable Volumetric Ethanol Excise Tax Credit (VEETC) to sunset this year
They probably won’t. But it sure would be good if they did.