This corporate farm handout should have been axed long ago.
Sens. Amy Klobuchar, D-Minn., and John Thune, R-S.D., along with ethanol opponent Sen. Dianne Feinstein, D-Calif., have proposed diverting $1.3 billion of the money remaining for the tax break this year to pay for debt reduction. And $668 million will be used for incentives for the ethanol and biofuels industries.
If accepted by the House and the Obama administration, the compromise could provide a quick path to end the ethanol credit as part of budget negotiations between Congress and the White House. The Senate last month adopted an amendment to end the $5 billion subsidy, but the fate of the legislation to which it’s attached—a bill renewing a federal economic development program—is uncertain.
The White House signaled support for the deal.