Source:  Rita Jane Gabbett, MEATINGPLACE.COM, 12/15/10

The Senate on Wednesday passed a tax policy package that includes a one-year extension of the Volumetric Ethanol Excise Tax Credit (VEETC) at its current level of 45 cents per gallon. In response, organizations representing the food industry and animal agriculture released the following statements:

“For 30 years, the American taxpayer has been subsidizing corn-based ethanol and unfortunately the Senate has failed to break that dependency relationship once again, even as this country teeters on the brink of a budgetary abyss.  For yet another year, $6 billion U.S. taxpayer dollars will be diverted from hardworking families to the pocketbooks of the ethanol industry for production that is mandated by the federal government despite the fact that the American people are crying out for fiscal responsibility.  Corn-based ethanol is not a long term, sustainable solution to end our dependence on foreign oil.  What it is, however, is grossly irresponsible fiscal, food and energy policy.” -- J. Patrick Boyle, president and CEO, American Meat Institute

“The vote is a triumph of politics over common sense and fiscal responsibility. The taxpayers will spend billions of dollars on a totally unnecessary subsidy to a mature industry. We continue to hope that the Congress will derail the ethanol gravy train.” -- George Watts, President, National Chicken Council
“Today's action by the Senate to extend the Volumetric Ethanol Excise Tax Credit further undermines U.S. food security to pad the pockets of oil companies, which are already required to blend ethanol into their products by the Renewable Fuel Standard.  There is no benefit to extending this law, it's purely a waste of taxpayer dollars.” -- Barry Carpenter, CEO, National Meat Association

“While it is disappointing that Congress appears set to renew the ethanol tax credit and import tariff for one year at their current rates, the debate clearly shows there are growing doubts on Capitol Hill about the wisdom of spending billions of taxpayers’ dollars to support an industry that is now more than 30 years old.  The fact that Congress renewed the credit for only one year means legislators intend to revisit this issue soon, and we are confident that 2011 will be the year when the credit and tariff are eliminated or significantly reduced.” -- Joel Brandenberger, President, National Turkey Federation

Other groups also opposing the action included ActionAid USA, Americans for Limited Government, Environmental Working Group, Friends of the Earth, Milk Producers Council, National Resources Defense Council, National Taxpayers Union and Taxpayers for Common Sense.

Renewable Fuels Association President Bob Dinneen praised the vote, saying, “The Senate appropriately recognized the economic value of domestic ethanol production. Extending these key incentives for American ethanol production and use will help save American jobs and provide the market stability allowing the industry to continue to grow.”

Estate tax
The Senate vote also extended all expiring tax rates for two years, which was praised by the National Cattlemen’s Beef Association.  If the 35 percent estate tax rate and the $5 million exemption level had expired it would have become difficult for ranchers to pass their operations on to the next generation.
The Senate approved the broad tax package by an 81-to-19 vote. The House of Representatives could consider the legislation as early as Thursday, according to the Washington Post.

For more stories, go to www.meatingplace.com.