Tax Dollars for Iowa Ethanol Producers
July 27, 2005
Looking forward to the feast of tax subsidies in the new energy bill, QWQC-TV Iowa glowingly congratulates House Speaker Dennis Hastert for his efforts to funnel taxpayer dollars into the pockets of rent-seeking Iowa ethanol producers:
House Speaker Dennis Hastert has inserted a special tax credit in a wide-ranging energy bill that is intended to help Illinois’ ethanol industry and those who buy the fuel additive when they fill their car up at the gas pump.
Under the provision, gas stations will get a tax credit to install equipment accommodating E-85 — an ethanol-based fuel alternative that its promoters say is up to 50 cents cheaper per gallon than unleaded gasoline.
Hastert says the tax credit will not only help consumers save money, but it will also benefit the environment, reduce the nation’s dependency on foreign oil and help farmers.
Sadly, “further complicates the federal tax code at a time when tax simplification is a domestic priority of the President” didn’t make the list of the credit’s likely effects.