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August 31, 2011
The Honorable Dave
Camp
Chairman, Committee on Ways and Means
United States House of Representatives
1102 Longworth House Office Building
Washington, DC
20515
The Honorable Sander Levin
Ranking Member, Committee on Ways and Means
United States House of Representatives
1139E Longworth House Office Building
Washington, DC 20515
Re:
Allow the Volumetric Ethanol Excise Tax Credit to Expire
Dear
Chairman Camp and Ranking Member Levin:
The
undersigned diverse group of business associations, taxpayer
advocates, hunger and development organizations, agricultural
groups, free-market groups, religious organizations,
environmental groups, budget hawks, and public interest
organizations urge you to allow the refundable Volumetric
Ethanol Excise Tax Credit (VEETC) to sunset this year and to
resist calls for spending on infrastructure for conventional
biofuels. The tax credit is already set
to expire on December 31, 2011, and should not be renewed.
Congress has the opportunity to end the $6 billion a year
subsidy to gasoline refiners who blend corn ethanol into
gasoline. At a time of spiraling deficits, we do not believe
Congress should continue subsidizing gasoline refiners for
something that they are already required to do by the Renewable
Fuels Standard.
Experts like the Congressional Budget Office and the Government
Accountability Office have concluded that the subsidy is
unnecessary, and leading economists agree that ending it would
have little impact on ethanol production, prices or jobs.
We
urge you to let VEETC expire this year and resist calls
for spending on infrastructure for conventional biofuels.
As our country moves to reduce the budget
deficit, it would be irresponsible to commit to new tax
incentives or additional spending that continue to subsidize
corn ethanol. If in fact congress has $6 Billion to spend,
consider underwriting a margin insurance safety net closer to
our dairy producer's point of breaking even.
Sincerely,
[National Dairy Producers Organization
Bill
Rowell, Chairman]
cc: Speaker Boehner, Majority Leader Pelosi,
Joint Select Committee on Deficit
Reduction
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