One of the most obvious, unjustified giveaways of taxpayer dollars has been the subsidizing of corn-based ethanol, a fuel that is blended with gasoline.
The subsidy plays well in states that have a big farm presence, because it forces taxpayers across the nation to pay ethanol manufacturers 45 cents for every gallon of ethanol that they produce. Lawmakers in those states essentially buy votes and support by continuing the flow of tax dollars.
But it’s a terrible deal for the rest of us. Ethanol damages small engines, such as the ones on lawnmowers. It also reduces mileage in vehicles, and it increases the price of many foods by diverting lots of corn from food production into fuel production. Ethanol can worsen air pollution, too, so it is hardly an “environmentally friendly” fuel.
Despite all those negatives, the Environmental Protection Agency has been studying whether to increase the percentage of ethanol that may be blended into our nation’s gasoline supply — from 10 percent up to 15 percent. That would be nothing but another huge giveaway to ethanol producers, at the expense of the nation as a whole.
The EPA had planned to issue its decision this month, but now it says it will delay a final ruling for a few months, until sometime this fall.
That is a slight relief, but the Obama administration has unfortunately supported greater use of taxpayer-funded ethanol. And Congress has mandated that refiners blend 12 billion gallons of ethanol into the fuel supply this year. That requirement is scheduled to jump to nearly 36 billion gallons by 2022.
Remember: Taxpayers are on the hook for a subsidy for every single gallon! Worse still, if 10 percent ethanol reduces mileage, imagine how much your mileage may suffer when your gasoline has 15 percent ethanol.
It is long past time to end — rather than expand — this ridiculous subsidy.