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daniel looker
Contributor

45 cent ethanol tax credit survives

It's official. Grassley's staff informed us this evening that the 45 cent per gallon tax credit for ethanol is in the draft of the Senate's tax bill that will be introduced soon. The Senate may vote on the bill in the next day or two. Here are a few more details.

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46 Replies
jrsiajdranch
Veteran Advisor

Re: 45 cent ethanol tax credit survives

Daniel thanks for the input I already got an email alert from MPC that it was in there but that Boxer was going to try to get the thing removed in conference.  Don't sick the midwest ethol mafia on me I am just reporting. Smiley Sad

 

All these little things could end up breaking the deal, we will see!

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Jim Meade / Iowa City
Senior Contributor

Re: 45 cent ethanol tax credit survives

I'm not sure what to think on this deal.  I'm inclined to say that the tax is not necessary and should be allowed to die this year when prices are pretty high.  If it's in for one more year, the presidential campaigning in Iowa next winter may be enough to keep it in for more years.  I don't know.

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kraft-t
Senior Advisor

Re: 45 cent ethanol tax credit survives

There is no guarantee that any part of the new tax bill will survive.

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daniel looker
Contributor

Re: 45 cent ethanol tax credit survives

You're right, kraft-t. This is far from a done deal. However, ethanol has powerful supporters on both sides of the aisle in the Senate and in the White House. I'm not so certain about the House, even if they weren't worked up into an ideological lather. 

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kraft-t
Senior Advisor

Re: 45 cent ethanol tax credit survives

Actually, I would prefer the extention of the ethanol credit were it not for budgetary problems. I think we need to trim farm subsidies. We can make money farming with current prices or even less.

 

I am hoping they reject the whole tax measure for two reasons. The country needs more revenue and they need to get it from those of us that can pay. Yes even if it is me.

 

Secondly the dems need to give the cave man a backbone that he is obviously lacking. I think the next two years will be mighty painful if Obama conceeds to everything the opposition offers. He needs to take the veto pen out of his pocket and prove to the right he will use it. Not just now but after the right takes over the congress.

 

Thise other fellows are playing hardball and he must stand up to it. Two years of caving is long enough.

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idalivered
Advisor

Re: 45 cent ethanol tax credit survives

 
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jec22
Veteran Contributor

Re: 45 cent ethanol tax credit survives

Well, Kraft, I am not going to wait for the government to do the right thing...be dead by then.  I am not going to sign up for the farm program in 2011....there is no way I can see that the government should be paying farmers direct payments with these prices.  For all the rich billionaires out there saying 'raise my taxes', I say...the government will take your check anytime you want to send it in.

Sometimes you have to lead by example.  It isn't going to start at the top.

 

Removal of the the blenders credit...the oil guys played their hand a little to soon on that one.  Thought it was out...raised gasoline futures twenty cents in a week.  I still believe high gas prices was really the tipping point in the 2008 crash.

 

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Kay/NC
Advisor

Re: 45 cent ethanol tax credit survives

I have read it somewhere, but cannot find the quote this morning...that Osama bin Ladin once said that "when oil prices reach $140 a barrel, the US will crumble." 


As I read it , he didn't say "if," he said "when."

I have just about arrived at a conclusion that there is a grand conspiracy of sorts at work in the world.  Bush II was elected as a pawn of the oil companies...not that I wanted Gore, but they got what they oaid for, didn't they? 

I think that if/when enough leaks come out, we will see that the 9/11 events were not acts of foreign aggression.  There is no way we have been unable to track down anyone we want to, anywhere on Earth, if we use the technology available today. 

The only real reason to be in the Middle East militarily is to protect oil and mineral assets.  It is colonialism with a different spin, that's all...those cultures appreciate democracy about as much as a fish appreciates a bicycle. 

The blender's credit allowed enough ethanol development to provide a politically-correct way to replace MTBE.  With farmers and environmentalists together arguing for distilleries to be built, and ag providing much of the financing as rationale for adding value to corn, NIMBY would be silenced. 

So, here we are post-2008.  I am still wondering if the stress fractures from high-priced oil didn't get us after all, and we're just in a slower form of freefall.  We can't even find a pair of shoes made onshore anymore for the most part.  I truly think we are moving into a post-American domination on the world stage. 

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Jim Meade / Iowa City
Senior Contributor

Re: 45 cent ethanol tax credit survives

Believing in a grand conspiracy might be comforting but not useful.

 

NIMBY is alive and well in may ag sites as the suburbanization of rural America brings beliefs chickens should free range and swine should not smell and Monarch butterflies should have a milkweed refuge.

 

The problem is pretty simple.  Other people will work for less money than we will.

 

Look at this 4 minute representation of the changes in finances and health over the last two hundred years.

 

200 countries, 200 years.  It is, of course, oversimplified and over dramatized, but it is interesting.

 

http://www.youtube.com/watch?v=jbkSRLYSojo

 

 

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