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Washington Debates Ethanol Tax Credits
06/14/2011
 

WASHINGTON (AP) - With lawmakers desperately working to shave

federal budget deficits, the Senate is debating a measure to

eliminate ethanol tax credits that pay the oil industry $5 billion

a year. The biggest defenders of the subsidies, however, include

farm belt conservatives leading the charge for less government.

Sen. Tom Coburn, a Republican from Oklahoma, is forcing a vote

Tuesday on a measure that would repeal the tax credits. Coburn says

they are wasteful subsidies for an industry that no longer needs

them.

Ethanol supporters say that with gasoline prices hovering near

$4 a gallon, it is no time to repeal tax credits that encourage

alternative fuels. They argue that ethanol is the only viable

alternative to imported oil.

 

© Associated Press
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