Sunday, June 15, 2008

McCain - End Ethanol Welfare

Adding the latest debate about ethanol, Arizona Senator and Republican Presidential nonminee John McCain has called for ending both the subsidy on American ethanol and dropping the tariff on imported ethanol. Currently both of these amount to about 50 cents per gallon.

The United States has “committed a series of errors in not adopting a sustainable energy policy,” McCain was quoted as saying. “One of those is the subsidies for ethanol from corn.”
McCain blamed the price supports for “destroying the market” and “causing a serious problem with inflation.”
The Republican also blasted U.S. tariffs on Brazilian ethanol imports, saying that the Brazilian product made from sugarcane “is much more efficient than ethanol from corn.”
Critics of the U.S. subsidies say spurring the planting of corn for use in ethanol has added to a sharp spike in global food prices.

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