Monday, 20 June 2011 07:44

The US Senate Ends Biofuels Tax Incentive

Last week, the US Senate voted to end federal investment in ethanol. Or so it states. Because if we look beyond the statements we may find a subtle correlation with the price of oil. "The bill would transition the current ethanol tax incentive, known as VEETC, to a variable tax incentive tied to the price of oil."

It's not exactly clear why politicians desperately seek to tax one type of fuel in order to credit another one. They might think of packages full with good intentions. Sadly, and usually, they just create more confusion and convolusion. Well, there's always something good in the bad news. And this is that from now on, when you fill the tank with regular, or diesel, you're gonna sponsor some nearby bio ethanol pump deployment. And you're gonna keep food prices high. This because they cultivate corn as engine fuel, not just for food consumption.  

James M. Taylor, Senior Fellow for Environmental Policy, The Heartland Institute

"This vote demonstrates the lack of appetite for this kind of destructive policy and political gamesmanship. The Senate and the country need to focus on a comprehensive energy strategy that seeks to expand America’s ability to renewably meet its fuel needs. Initiatives like the legislation introduced by Senators Thune and Klobuchar yesterday are the exact kind of responsible policy prescriptions that will create domestic jobs and help meet the energy challenges of the 21st century. With this kind of political theater hopefully behind us, American ethanol producers are ready to work with lawmakers to ensure a robust and diverse domestic ethanol industry can develop in a fiscally responsible manner."

Look what Bill and Melinda Gates did to Ghana:

Biofuels are an option for countries with certain shortages. Question is what's the real, natural, shortage in the US? Is America short of crude oil? Short of natural gas? According to recent discoveries, piling up new resources over the old ones, America sits on great reserves of gas and oil. It's really hard to understand why America needs a biofuels industry after all...

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