Friday, July 16, 2010

Past Time to Drop the Ethanol Subsidies

While there should have never been subsidies for ethanol, now that the billions in tax credits are about to run out, we should just fold it up and let ethanol stand on its own.

If the market wants it, they'll pay for it, if not, let it fall by the wayside, and something propped up by the government which the public rejects, is throwing money down a black hole, never to return, or give a return.

At this time, close to $6 billion is offered in subsidies for ethanol, all via tax credits. That equals 45 cents a gallon.

As critics of the industry rightly note, if they can't stand on their own after 30 years, it's a complete waste of taxpayer dollars, and of course it is.

Ethanol has been known for years to destroy small power equipment like chainsaws and numerous others, making it highly costly in that regard as well.

The problem is, some groups are calling for the subsidies to stop, but then putting the money into other stupid initiatives like flex-fuel cars and other dubious products.

Let the market decide, along with the creative flow of business, which always creates the best and most innovative products and services we use.

We also need to limit the size of government, so the need, not only to get rid of this ineffective tax credit needs to be put in play, but also to keep the money off the table for anything else, and let business and the market decide what they want.

Some lawmakers say it would hurt the industry if they did that, but if it did, there is no real ethanol industry, but a government-propped entity sucking of the blood of taxpayer money.

This is no different than the apparent shocking surprise that the economy isn't' growing in America. Any honest and informed person knew that.

The government pouring billions into it to give the appearance of growth is all that was, even though the mainstream media reported the fantasy as a reality.

Now they're backpedaling as they know people are seeing the false undergirdings of a illusory recovery which never even created a job, but made it appear things were improving.

That's the same with ethanol. There's no foundation there, and we need to remove the foolish laws forcing the blend in gasoline to increase, continuing to reinforce a so-called fuel source very few people want.

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