Report: Tax Deal Revives Ethanol Subsidies
It isn’t being reported, but Iowa Senator Charles Grassley is telling his constituents that the deal that extends the Bush tax cuts includes a revival of one of the more wasteful subsidies in the Federal budget:
The tax legislation that congressional Republicans and the White House have agreed to will include extensions of the biodiesel and ethanol subsidies through 2011, says Iowa. Charles Grassley, the ranking Republican on the Senate Finance Committee. The $1-a-gallon biodiesel subsidy, which lapsed at the end of 2009, would be retroactive to this year, he said.
Some leading Senate Democrats, including the chairman of the Senate Finance Committee, Max Baucus of Montana, indicated that the energy tax provisions were still to be worked out. “We’re going to have to wait the detail,” said North Dakota Sen. Kent Conrad, a member of the finance committee.
If Congress does extend the biofuels subsidies temporarily, lawmakers will have to decide what to do with them again next year.
Of course, with the Presidential election year I think it’s pretty clear what will happen.
H/T: Virginia Virtucon