Thursday, June 23, 2011

Senate Passes Ethanol Tax Break Bill

This is a travesty. Since the MSM failed to report the news, the Senate just approved extending Ethanol subsidizes to the American farmer. An Ethanol tax break is a scam against the American tax payer. Ethanol subsidizes are only making the farmers rich. There are many facts that are not advantageous using Ethanol. Ethanol retains water, and it creates a water problem in the fuel tank and fuel line. Ethanol is known to dissolve plastic and other solid materials. Ethanol will dissolve varnish, rust on steel, and corrosion on aluminum tanks, which will contaminate the fuel. Also, ethanol has been known to dissolve components in the fuel system. Ethanol is a good paint stripper. As it breaks off gum and resin deposited by years of gasoline sitting around in tanks, it turns into sticky goo. This will plug filters, ruin carburetors and fuel injectors, and may cause complete engine shutdown. Besides, Ethanol gets poor gas mileage. Typically, it is more expensive than gasoline, and it is not cost effective. Since Ethanol produces less energy than petroleum gasoline when burned, gas mileage is reduced by 25 percent. The process to make Ethanol is an energy-intensive process that often uses water, electricity generated from coal, another source of greenhouse emissions. Also, it is necessary to add petroleum gasoline to make Ethanol non-drinkable. Overall, Ethanol will not lessen our dependence on foreign oil.

(Nacsonline) WASHINGTON – Republican Sen. Tom Corburn’s proposal to end ethanol tax subsidies did not have the 60 votes necessary to staunch a threatened filibuster. However, the Senate approved a bill that kept the ethanol tax breaks but 34 Republican senators voted against the measure, the Washington Post reports. The bill, sponsored by Sen. Tom Coburn (R-OK), would have eliminated the yearly tax credits given to ethanol blenders.

The proposal did not garner enough votes to withstand a promised filibuster, but it get the support of a majority of Republicans, who have vowed to not raise taxes in any fashion, including tax breaks.

“It’s my opinion that it’s a disgraceful subsidy that is unwarranted and a waste of taxpayer dollars,” said Sen. John McCain (R-AZ).

Coburn has been crusading against tax deductions and credits, which has been the subject of much debate lately. Vice President Joe Biden has been meeting with members of Congress to work on a deal that would reduce the national debt and fund the government.

Republicans and Democrats are hammering out the details, which will likely include decreases to spending programs and tax subsidies.

The House is expected to pass the measure to extend the ethanol tax credits.