An unusually broad and diverse group of approximately 90 organizations and companies has given its support to Sens. Ben Cardin (D-Md.) and Tom Coburn (R-Okla.) for their proposal to end the federal tax credit subsidy –– the Volumetric Ethanol Excise Tax Credit –– for corn-based ethanol.
Arguing that VEETC artificially raises U.S. food prices and distorts energy markets, the organizations sent a joint letter to Cardin and Coburn applauding their proposal to introduce bi-partisan legislation to end the tax credit.
According to the group, the Cardin-Coburn proposal would help to curb high food prices and, if enacted immediately, would save taxpayers nearly $4 billion during the remainder of 2011.
Patrick Boyle, president and CEO, American Meat Institute, said, "With the US corn supply at record lows, corn prices at record highs and ethanol production absorbing 40 percent of US corn production, government subsidies for corn-based ethanol, like VEETC, continue to artificially inflate the market for corn.
"As a result, the cost of feeding livestock has increased, which in turn drives up the cost of food production for everyone in the supply chain, trickling down to the consumer," Boyle added. "This bipartisan bill is an important step in reversing that trend."
The coalition includes business associations, taxpayer advocates, hunger and development organizations, agricultural groups, free-market groups, religious organizations, environmental groups, budget hawks, and public interest organizations.
