Allthat means is that the 20% ethanol they mandated will have to be more
expensive.
--R
On 7/15/11 7:47 PM, relng...@aol.com wrote:
By Bill Mattos
Special to The Bee
Published: Friday, Jul. 15, 2011 - 12:00 am | Page 17A
The U.S. Senate recently voted 73-27 in favor of an amendment by Sen.
Dianne Feinstein, D-Calif., to eliminate the Volumetric Ethanol Excise Tax
Credit, or VEETC, and repeal the import tariff on foreign ethanol. The amendment
was identical to the Ethanol Subsidy and Tariff Repeal Act, which was
introduced by Sen. Tom Coburn, R-Okla., and Feinstein in May.
"Today's overwhelming vote shows a bipartisan consensus to repeal
irresponsible ethanol subsidies and tariffs," Feinstein said at the time. "The
73
votes sent a powerful message that the days of big subsidies for ethanol are
coming to a close. We must be serious about addressing the debt and deficit,
and this is a good first step."
The ethanol subsidy currently gives large oil companies 45 cents for every
gallon of ethanol they blend with gasoline, even though much of that use is
mandated by law. If the subsidy would have been repealed by July 1, as the
amendment calls for, it would save approximately $2.7 billion for the
remainder of 2011.
The ethanol tariff comprises a 54-cent-per-gallon secondary tariff and a
2.5 percent ad valorem tax. The ethanol tariff makes the United States more
dependent on foreign oil by increasing the price of imported ethanol.
"Ethanol is the only industry I know of that receives a triple crown of
government support: its use is mandated by law, it enjoys protective tariffs
and oil companies receive federal subsidies to use it," Feinstein added.
"These flawed policies, which cost taxpayers nearly $6 billion a year, must be
changed."
Right after this vote, the House of Representatives introduced a similar
bill, led by Rep. Wally Herger, R-Chico, to do just about the same thing as
passed in the Senate.
Chickens, turkeys, ducks and other poultry are fed a diet of 70 percent to
90 percent corn; it's a major energy source for the welfare of our birds.
The dairy and cattle industries also feed huge amounts of corn to their
animals to keep them healthy and robust.
Nearly all the ethanol produced in this country is distilled from corn. The
demand for corn for ethanol is a major factor for the increasing corn
prices that has poultry companies spending three times as much for corn as they
did in 2006, when the ethanol industry's demand really kicked in.
California's family-owned poultry companies are spending $300 million more for
corn
today than they did last year.
Consumers won't and can't pay enough to fund this outrageous increase in
corn prices. With 40 percent of the corn crop going to ethanol instead of
food, prices to farmers are putting many of them out of business. Food prices
will also continue to go up, and we attribute much of these increases to a
federal policy that must change.
While we are supportive of the Senate's recent actions, we must be diligent
to see these changes enacted – and soon. The Senate vote was only a primer
for what's to come, since any legislation like this must originate in the
House before the Senate can do anything. Their historic vote was huge for the
anti-corn ethanol folks, like us, which is why we now see the House looking
to do much the same thing.
But like everything that goes on in Washington, D.C., we must be as
vigilant as ever and continue to let our leaders know how important this is to
animal agriculture, the food industry and the consumers who rely on food
throughout the world. If you are concerned about jobs, then you should be with
us
in trying to eliminate these subsidies. These corn subsidies have got to go
and not soon enough. But I urge you to send a note to your member of Congr
ess, thank both Sens. Feinstein and Barbara Boxer for their work to eliminate
these subsidies, and make a pest of yourself.
If you are concerned about corn ethanol subsidies, don't let today go by
before contacting the office of your member of Congress. Now!
Read more:
http://www.sacbee.com/2011/07/15/3771111/the-time-is-ripe-to-eliminate.html#ixzz1SBdIhPqC
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To search list archives http://www.okiebenz.com/archive/
To Unsubscribe or change delivery options go to:
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