Economy Environment

Under-Reported Good News

Congress failed to renew the subsidy for corn-based ethanol before leaving D.C. for the holidays.

When the U.S. Congress adjourned for the holidays on Friday, December 23, its departure sealed the fate of subsidized ethanol production.

During its session, the Congress did not renew a tax break for U.S. production of corn-based ethanol that had become increasingly unpopular across a wide area of the political spectrum.

The tax credit amounted to 45 cents per gallon of ethanol that was blended into gasoline. It had been in place since 1980.

Turning food into fuel never made sense to begin with, especially when you consider the fact that corn is used for virtually everything from animal feed to corn starch.

Ethanol subsidies indirectly increased the cost of going to the grocery for all of us, and corn-based ethanol production was never any more environmentally friendly than oil anyway.

It's unfortunate that the only way ethanol subsidies could end was for Congress to go on vacation, but I'll take it.