Senators Daschle and Harkin vow to Maintain Ethanol Tax Break

12/02/96

Reuters reports that U.S. Senators Tom Daschle, D-South Dakota, and Tom Harkin, D-Iowa vowed last week to fight any effort that would eliminate a tax break for the alternative fuel ethanol, which is distilled from corn.

The Senators cited comments that House Ways and Means Committee chairman Bill Archer, R-Texas, made last week when he called the ethanol tax credit "an anachronism".

Harkin said, "when Bill Archer and the Big Oil crowd tried to kill ethanol in the past, common sense won out and we stopped them. If he wants to grab that tiger by the tail again, it's up to him, but he's in for a real battle."

Oil refiners have consistently fought the 5.4 cents per gallon tax credit that the government grants ethanol blenders against the 18.3 cents per gallon federal gasoline tax.

Harkin said the ethanol subsidy was necessary for promoting the use of "home-grown" energy sources that would decrease U.S. dependence on foreign oil and promote a cleaner environment.

Paul Dever -- The Auto Channel