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WILCOX, Neb. – Dec. 10, 2010
–“Ethanol is an Immature Industry compared to the fossil fuel
boys” says Gale Lush, Chairman of the American Corn Growers
Foundation (ACGF). “We understand that fossil fuels have been
subsidized for about 100 years and that’s given them a lot of
political influence, but it’s time to stand up for the United
States of America, not the Middle East.” The Wilcox, Nebraska
family farmer and member of a local ethanol plant knows that the
oil industry and their lobbyists have tons of power in
Washington, DC, but Lush counts on the relationships that he and
his fellow Nebraskans have with Senator Ben Nelson, Senator Mike
Johanns, Congressman Adrian Smith (now appointed to the powerful
House Ways and Means Committee that writes tax policy)…effecting
ethanol subsidies, and our positive relationship with
Congressman Fortenberry and Congressman Terry of Omaha). Lush
says, “he expects all of the Nebraska Congressional Delegation
to stand up for ethanol federal tax credits, and if necessary,
stand up against big oil interests to serve Nebraska’s rural
economic development interests and the pursuit of policies that
work for rural Nebraska. A recent article by DTN puts the
ethanol vs. oil subsidy issue in perspective” (See DTN article
excerpts of 10/23/10 below) Oil
Receives More Taxpayer Dollars
DTN Finds Oil Industry Subsidized Much Higher Than Ethanol
Adding up the tax deductions,
credits and other public benefits the oil industry receives,
U.S. taxpayers support oil to the tune of between $133.2 billion
and $280.8 billion annually, according to DTN research. It's a
wide range because definitive numbers on many benefits are
ranges unto themselves. Documents DTN examined didn't always pin
a solid dollar figure on a tax break or other incentives.
A list of the various taxpayer
benefits the two industries receive will be part of a future
installment in this series.
Leaving out the Persian Gulf
military budget, oil still receives between $100 billion to $200
billion compared to $16 billion for ethanol.
DTN's research also was focused
on determining which industry, ethanol or oil, depends more on
subsidies and other public funds for its very survival. Here,
ethanol gets the nod. Few would argue that elimination of
tariffs, credits and other subsidies would be lethal to the
fledgling biofuels industry.
CRUCIAL TIME FOR INDUSTRY
Several important ethanol
subsidies are set to expire Dec. 31. That includes the 45-cent
volumetric ethanol excise tax credit (better known as the
blenders' credit or VEETC), the small producers' tax credit and
the 54-cent ethanol import tariff.
Key ethanol players have been
working on a policy proposal they presented to the White House
interim chief of staff at the end of September. The plan
included having a lower ethanol tax credit paid directly to
ethanol producers rather than fuel blenders.
The ethanol industry is also
encouraging federal policies to encourage more ethanol use. |
