Agricultural News
Oklahoma's Coburn Pulls VEETC Bill
Thu, 31 Mar 2011 17:24:39 CDT
There has been much pressure placed on Senator Tom Coburn of Oklahoma to pull his amendment which would eliminate the Volumetric Ethanol Excise Tax Credit. Now, Senator Coburn has given in and pulled the measure from consideration. It would have eliminated the 6-billion dollar ethanol blenders subsidy.
The measure's supporters believe VEETC is a targeted tax benefit to blenders who already receive federal incentives from the Renewable Fuels Standard, which requires fuel to be blended with ethanol. They called the tax credit expensive and unnecessary. They also blamed the subsidy for higher food prices.
But, the Ethanol industry kept pressure on the Senate to stop the Coburn amendment. The most recent salvo came from Renewable Fuels Association President and CEO Bob Dinneen. The industry leader said Coburn's measure would only lead to higher prices at the pump and bigger bank accounts for OPEC.
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