Congress closed out 2011 WITHOUT extending the 30-year old ethanol subsidy. The REQUIREMENT for blended fuels is still in place. At the same time, Congress cancelled a tariff on ethanol imported from Brazil. This opens the tap for a source of ethanol that doesn't have the reputation of being a dirty diversion of a food crop that corn-based ethanol carries. It also means that while the blenders' tax credit is no more, the 2007 legislation calling for a significant increase in the use of renewable fuels is likely not going anywhere if the abundant ethanol produced from Brazil's sugarcane economy can be used instead. As an aside – the corn lobby isn’t thrilled! However, cancelling the subsidy will give Obama another $6 Billion to pour into alternative fuel research (read that as: pick winners and losers)
Another pearl of wisdom on fuel consumption is this.
N.C. is raising the state fuel tax the first of the year by 8 cents a gallon because….. the price of gas has been so high that people have cut back on driving, preventing the state from collecting the necessary taxes on gasoline that their bloated budget requires. Did you follow that? Raise gas price è conservation è less gas bought è fewer taxes collected è gotta raise taxes. Got it --- makes sense? The city of Raleigh did the same thing a few years back during a ‘drought’ - they raised the price of water to encourage conservation – and the citizens complied – and the city’s revenue dropped like a stone – so they had to raise water prices.
When will these idiots learn that raising taxes does NOT generate revenue.
It’s the SPENDING, STUPID!