They're gonna cave for ethanol subsidies?

[girl gone mad]

Say it ain't so.

From the http://news.yahoo.com/s/ap/us_tax_cuts;_ylt=AvzSV6XJaEKzLQ6N5FEc.zes0NUE;_ylu=X3oDMTNjOHBybW5tBGFzc2V0A2FwLzIwMTAxMjEwL3VzX3RheF9jdXRzBGNjb2RlA21vc3Rwb3B1bGFyBGNwb3MDMwRwb3MDMTIEcHQDaG9tZV9jb2tlBHNlYwN5bl90b3Bfc3RvcnkEc2xrA3dobGF3bWFrZXJzYw--">AP:

Way cleared for tax cut bill; energy breaks added

WASHINGTON – The White House and key lawmakers cleared the way Thursday night for swift Senate action to avert a Jan. 1 spike in income taxes for nearly all Americans, agreeing to extend breaks for ethanol and other forms of alternative energy as part of the deal.

Tax provisions aimed at increasing production of hybrid automobiles, biodiesel fuel, energy-efficient homes, coal and energy-efficient household appliances would be extended through the end of 2011 under the bill.

Debate on the expanded measure began almost immediately. While there is no precise timetable for passage, a test vote was set for Monday afternoon that appears likely to demonstrate overwhelmingly support for the legislation, which supporters say would help accelerate a sluggish recovery from recession.

The events unfolded as the White House predicted that the agreement between President Barack Obama and top Republicans would clear by year's end — even though House Democrats voted Thursday not to allow it to reach the floor without changes to scale back tax relief for the rich.

[EFerrari]

1. Oh, gee, what are the odds.

[msongs]

2. Obama cuts a last second secret deal with repubs n trying to stampede it through nt

[Occam Bandage]

3. That doesn't really count as a "cave." So long as Iowa gets to play primary kingmaker,

both parties are going to continue to play the ethanol game.

[Hardrada]

4. I'm an Iowan and I don't think our congressfolk are so gullible.

Nor Senator Harkin.

[Lasher]

12. I believe the point concerns Iowa's level of influence in primary elections.

It is a point well taken.

[Kablooie]

5. Ethanol uses more fossil fuel to create than it produces.

With petroleum based fertilizers and machines used to fertilize, harvest, process and ship, the amount of energy produced is less than what was consumed.

So obviously it's a Republican priority to keep this system going.

[Rincewind]

10. Fossil fuel uses

more fossil fuel to create than it produces. It takes more than 2 barrels of petroleum to produce 1 barrel worth of petroleum products.

[ProSense]

6. Harkin: Tax package extends ethanol credits, renewable electricity grants for one year

Harkin: Tax package extends ethanol credits, renewable electricity grants for one year

[Major Hogwash]

9. That's another chip on the table for our side. Renewable energy.

This was another good idea added to this deal.

[amborin]

7. "preposterous outcome" and subsidies for renewables will likely be allowed to expire....

http://www.nytimes.com/2010/12/09/opinion/09thu3.html?scp=3&sq=ethanol%20and%20obama&st=cse

Last-minute negotiations over the tax package could send America’s energy policy in exactly the wrong direction. If budget-conscious Republicans have their way, tax credits for renewable energy sources like wind and solar power would be allowed to expire, while wasteful and unnecessary tax breaks for corn ethanol — an environmentally dubious fuel supported by farm-state legislators of both parties — would be extended.

This would be a preposterous outcome at a time when the nation desperately needs new investment in clean energy as well as the jobs that go with it.

In a rare sighting of bipartisanship and good sense, 17 senators are calling for subsidies on corn ethanol to lapse, as scheduled, at the end of the year. If they are extended, as the industry and its lobbyists want, it will cost taxpayers $31 billion across the next five years.

Corn ethanol’s environmental benefits also have been called into serious question. Some studies have found that corn ethanol, as presently produced, releases more greenhouse gases than petroleum fuels. The rush to convert food crops to fuel production also has contributed to spikes in food prices.

Meanwhile, two modest but useful tax incentives, also scheduled to expire on Dec. 31, should be renewed. Both were included in the 2008 stimulus bill. One provides tax credits — technically, grants in lieu of credits — for renewable energy projects like wind and solar. Extending this program would create thousands of new jobs. Allowing it to lapse would threaten two important industries struggling to meet foreign competition.

The second incentive is a manufacturing tax credit for companies that retool their factories to produce energy-efficient batteries and other clean-energy products. The $2.3 billion provided under this program was snapped up in a hurry, partly by rust-belt states desperate for new jobs.

Congress should keep the subsidies for renewable energy while jettisoning the subsidies for corn ethanol. That makes sense for the environment, the economy, and for American taxpayers.

[bigtree]

8. they never really oppsed the President making a deal to let the upper-income votes go

They were more than happy to see the President get out front and take the heat for something they were going to do eventually anyway.

[cornermouse]

11. Ethanol also uses up large amounts of water that would otherwise

be used as drinking water. They fought against building at least one ethanol plant here in a red state based on the amount of water that it would use up.

[Hannah Bell]

13. ethanol subsidies = $$$$ for archer daniels midland.

this bill = a grab bag of goodies for one & all.