Senate agrees to extend ethanol tax credit
WASHINGTON –– Despite urging from an industry coalition and other opposition groups, the Senate has agreed to a tax policy package that includes a one-year extension of the Volumetric Ethanol Excise Tax Credit (VEETC) at its current level of $0.45 per gallon.
“The Senate’s decision to accept a deal to extend for another year the outdated and unnecessary subsidies for the corn ethanol industry is outrageous and shortsighted,” responded organizations representing the food industry, animal agriculture, environmental groups and budget watchdogs. “Now it’s time for the House of Representatives – especially the leadership and the House negotiators on the tax package – to stand up and say no to extending federal corn ethanol subsidies.
“The federal government should not waste another $6 billion on this needless subsidy,” the statement added. “It is bad for the environment, food producers, farmers and consumers. And at a time when the budget deficit and national debt have reached a crisis level, bad for the nation’s long-term fiscal health. Enough.”
Organizations signing the letter include the American Meat Institute, Grocery Manufacturers Association, Friends of the Earth, National Taxpayers Union, Environmental Working Group, Competitive Enterprise Institute, American Frozen Food Institute, National Council of Chain Restaurants, National Chicken Council, National Meat Association, Milk Producers Council, Washington State Dairy Federation, Snack Food Association, Northwest Dairy Association, Americans for Limited Government, ActionAid, National Wildlife Federation, American Bakers Association and the National Turkey Federation.