Washington, D.C., November 29, 2010 — A coalition of political groups today urged Congress to scrap energy subsidies by allowing the subsidies to expire at the end of the year:
In particular, Congress has the opportunity to end the $6 billion a year subsidy to gasoline refiners who blend corn ethanol into gasoline. At a time of spiraling deficits, we do not believe Congress should continue subsidizing gasoline refiners for something that they are already required to do by the Renewable Fuels Standard.
The latest call for ending such mandates follows an October letter to Congress by free market groups urging Congress to scrap the 45¢ per gallon Volumetric Ethanol Excise Tax Credit (VEETC) and the 54¢ per gallon tariff on imported ethanol.
“There’s no better way for the lame duck Congress to show that it got the message of the November elections than to sit back, do nothing, and let the ethanol tax tumble into history’s dustbin,” said Marlo Lewis, CEI Senior Fellow and signatory to both aforementioned coalition letters.
“If fiscal responsibility counts for anything in Washington, the lame duck will embrace this easy option to avoid an additional $30 billion in deficit spending over the next five years,” said Lewis.