AMI Supports New Legislation to End Federal Support of Ethanol; Urges Budget Negotiators to Eliminate VEETCWednesday, May 4, 2011
(American Meat Institute)
Senator Tom Coburn (R-OK) and Senator Diane Feinstein (D-CA) yesterday introduced new legislation, The Ethanol Subsidy and Tariff Repeal Act, which if enacted, would fully eliminate the Volumetric Ethanol Excise Tax Credit (VEETC) and fully repeal the import tariff on foreign ethanol.
The American Meat Institute joined a diverse group of almost 50 associations in sending a letter to Senators Coburn and Feinstein supporting the measure.
“Conventional ethanol is due to receive some $6 billion in taxpayer funds this year,” the groups wrote. “Continuing to subsidize oil companies to blend ethanol – which they are already required to do by the Renewable Fuels Standard – is wasteful and unnecessary. The Ethanol Subsidy and Tariff Repeal Act will save U.S. taxpayers several billion dollars this year and have almost no impact on ethanol production, jobs or prices.”
AMI President and CEO J. Patrick Boyle issued the following statement in response to the introduction of the legislation:
“I commend Senators Coburn and Feinstein for their leadership on this important issue. At a time of record federal deficits coupled with rising food prices, it is time to end the 30 years of taxpayer subsidies afforded to the corn-based ethanol industry, which is costing taxpayers approximately $6 billion this year alone. By eliminating the Volumetric Ethanol Excise Tax Credit and the import tariff, this bill would be a tremendous first step in eliminating unnecessary federal support for corn ethanol. It is time the corn ethanol industry operates on a level playing field with other commodities that rely on corn as their major input. AMI strongly supports this bill and encourages its swift passage in the Senate.”
The letter and an accompanying press release are available at: http://www.meatinstitute.org/ht/a/GetDocumentAction/i/68903.
In a separate measure on Tuesday, AMI joined livestock and poultry groups, including National Cattlemen’s Beef Association, National Chicken Council, National Meat Association, National Pork Producers Council and National Turkey Federation, in urging key Senate budget negotiators to eliminate the VEETC in an effort to save taxpayers more than $6 billion per year.
“Not only would saving the U.S. Treasury $6 billion in lost revenue be a prudent budgetary decision, such action would also be a good and strong signal that it is now time for the 30-year old ethanol industry to begin to compete in the marketplace without the aid of government subsidies,” the groups wrote in a letter to a bipartisan group of senators known as the "gang of six,” who are currently working to craft a budget resolution for Fiscal Year 2012 and beyond. The "gang of six" includes Senators Saxby Chambliss (R-GA); Mike Crapo (R-ID); Tom Coburn (R-OK); Richard Durbin (D-IL); Kent Conrad (D-ND); and Mark Warner (R-VA).
This letter can be viewed in its entirety at http://www.meatinstitute.org/ht/a/GetDocumentAction/i/68905.share on facebook share on twitter