Dec 4, 2010

Libertarian No More? Bob Barr Calls for Extension of Massive Ethanol Subsidies

From Bob Barr at The Hill:

Much post-election newsprint and internet chatter has been devoted to the debate over whether to extend the Bush-era tax cuts and, if so, in what form and for what length of time. This is understandable considering the degree of lethargy still plaguing our economy. Saving taxes also is a good topic to be discussed at any time -- whether in the form of marginal rate reductions, extending tax credits, or via other mechanisms -- insofar as saving money for taxpayers is never a bad thing. And, with regard to tax savings for businesses, more often than not tax cuts increase government revenues in the long run.

However, one particular tax-credit issue – that involving the extension of the Volumetric Ethanol Excise Tax Credit (“VEETEC”) which is otherwise doomed to expire at year’s end – has failed to receive the attention it should, even though it is a tax credit that makes sense for farmers, ethanol producers, and consumers alike.  

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