Ethanol subsidies pose early test for the GOP
Republicans talk about ending wasteful government intervention. Congressional Democrats say they want to protect the environment. And Barack Obama claims he’s looking for bipartisan cooperation and reform. All of these goals would be served by rolling back ethanol subsidies.
“A Republican takeover of the House of Representatives,” Bloomberg News speculated this week, “may mean that U.S. subsidies aiding ethanol producers will be cut after the party pledged to reduce government spending.”
We’ll find out within months if that’s putting too much stake in GOP rhetoric.
Ethanol fuel (especially ethanol distilled from corn) is subsidized in dozens of ways by governments at all levels. Two of the longest-running subsidies — a 54-cent-per-gallon tariff on imported ethanol, and 45-cent tax credit for every gallon blended with gasoline — expire on Dec. 31, making them a top priority for industry lobbyists during the lame-duck session.