Wednesday, July 27, 2011

Why You Should Support the Ethanol Subsidy Repeal Act


The Ethanol Subsidy Repeal Act, introduced by Congressman Wally Herger (R-CA) and Congressman Joseph Crowley (D-NY), is a good example of how there are still issues that both the left and right can work together on - its cosponsors include 10 democrats and 8 republicans. The bill would repeal the Volumetric Ethanol Excise Tax Credit (VEETC) and ethanol tariff, which currently provide an incentive to overproduce crops, such as corn, and devote them to biofuels. By converting food into fuel, the price of those crops are inflated and price volatility rises.

Those who cannot afford food are not the only ones harmed by these policies. US taxpayers pay $5 billion each year and gain little in return. It is estimated that VEETC will create 400 jobs in 2011, which means each job costs $14 million. Additionally, biofuels don't make enough of an impact to reduce our dependence on foreign oil (if every corn harvest was used to make ethanol, it would only be able to replace 1/6 of the needed gas). Biofuels are also commonly seen as an environmentally friendly alternative to gasoline, but the process of converting corn into ethanol usually emits more greenhouse gases than gasoline.

Calling your local representative is a great way to let them know where their constituents stand on this issue. At the US House of Representatives website, you can find contact information by entering your zip code. Representative Pat Tiberi, being on the Committee of Ways and Means, is particularly important for this issue. The number for his Ohio office is (614) 523-2555. Oxfam America also has an e-action that you can sign, which can be found here.

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