Today Americans for Tax Reform reiterated its opposition to the Volumetric Ethanol Excise Tax Credit (VEETC) in a letter sent to Chairman Camp and Ranking Member Levin. ATR President Grover Norquist explained why VEETC is bad tax policy and ever worse energy policy, writing:
The ethanol regime, the Renewable Fuel Standard (ethanol mandate), ethanol tariff, and VEETC, are indicative of government overreach. Unnecessarily attempting to wean Americans off of petroleum products, Washington propped up an industry at the expense of the American consumer.
As often happens when politicians inject themselves into the marketplace, every justification ethanol proponents have espoused over the last thirty years has been proven false—the fuel does not meaningfully reduce emissions and is an inefficient substitute for traditional gasoline.
Allowing the VEETC to expire is a necessary first step towards dismantling government-induced ethanol consumption. Alternative fuels may very well prove to be a viable substitute for gasoline someday but forcing Americans to carry this politically connected industry’s weight is both unfair and unsustainable.