Letter to Congressional Leadership Opposing Corn Ethanol Subsidies

November 29, 2010

A broad coalition of organizations, including Freedomworks, MoveOn, environmental advocates, budget hawks, religious organizations, hunger and development groups, food producers, agricultural industry representatives and dozens of others from all parts of the political spectrum sent a letter to Congressional leadership on Nov. 29 2010 stating their opposition to an extension of the $6 billion a year Volumetric Ethanol Excise Tax Credit (VEETC) for gasoline refiners who blend corn ethanol into gasoline. Given growing concerns about budget deficits, the letter highlighted the wastefulness and redundancy of continuing to subsidize gasoline refiners for something they are already required to do under the Renewable Fuels Standard, cited consensus among experts that eliminating the tax credit would have little impact on domestic ethanol production, prices or jobs, and called on Congress to let the VEETC expire at year-end.