WASHINGTON, DC — Growth Energy, the coalition of U.S. ethanol supporters, in conjunction with the American Coalition for Ethanol, National Corn Growers Association, Renewable Fuels Association and National Sorghum Producers, sent a letter to senators today urging them to oppose a job-killing tax increase recently proposed by Sen. Tom Coburn, R-Okla. Amendment number 220 would immediately repeal a tax incentive for ethanol use known as the Volumetric Ethanol Excise Tax Credit, or VEETC.
“At a time when gas prices are rising due to our dependence on foreign oil, this is the wrong choice at the wrong time. Ethanol – produced right here in America – is creating jobs that cannot be outsourced, strengthening our national security and improving our environment today,” the groups noted in the letter. “Just last December, Congress extended the tax incentive for ethanol use and provided the kind of stability, albeit brief, that investors and markets demand. Reneging on that stability just four months after voting to provide it is the kind of job-killing, innovation-stalling policy that will keep America addicted to foreign oil.”
The letter went on to suggest that Sen. Coburn, ostensibly interested in rolling back incentives, should take a look at the huge subsidies currently enjoyed by the oil, natural gas, coal and nuclear industries.
Please note the complete letter below:
March 17, 2011
Dear Senator,
Our organizations urge you to oppose a job-killing tax increase that Sen. Tom Coburn, R-Okla., has offered to the Small Business Reauthorization bill that is currently on the Senate floor. His amendment, number 220, would immediately repeal a tax incentive for ethanol use known as the Volumetric Ethanol Excise Tax Credit, or VEETC.
At a time when gas prices are rising due to our dependence on foreign oil, this is the wrong choice at the wrong time. Ethanol – produced right here in America – is creating jobs that cannot be outsourced, strengthening our national security and improving our environment today. In fact it is the only significant progress this nation has made in reducing our dependence on foreign oil since the OPEC oil embargo. Ethanol is currently ten percent of our nation’s fuel usage.
Just last December, Congress extended the tax incentive for ethanol use and provided the kind of stability, albeit brief, that investors and markets demand. Reneging on that stability just four months after voting to provide it is the kind of job-killing, innovation-stalling policy that will keep America addicted to foreign oil.
America imports nearly $1 billion worth of oil each day. In just one week, we will spend more on imported oil than we will on biofuel-related tax incentives in an entire year. And what do we get for that transfer of wealth? Each time a terrorist threatens a pipeline, our gas prices go up. Each time a tyrant turns violent against his peaceful countrymen, our gas prices go up. Each time a hurricane forms in the Gulf of Mexico, our gas prices go up.
America’s economy and its energy policy should not be at the mercy of the whims of dictators and the pique of those who may not fully appreciate the value of domestic renewable fuels. We should be investing in all renewable fuel technologies to give America more control over its energy future.
If Sen. Coburn wants to debate this tax break, we would urge him to have an equitable debate that also includes tax incentives that the oil, natural gas, coal and nuclear industries receive.
The ethanol industry is fully prepared to reform and reduce the cost of current tax programs; we would suggest Sen. Coburn work on efforts to force other industries to do the same. We stand ready to work with Congress and the Administration to accomplish these goals.
Sincerely,
Growth Energy
Renewable Fuels Association
American Coalition for Ethanol
National Corn Growers Association
National Sorghum Producers