- Hunger, Religious, Farmer, and Development Organizations Oppose VEETC
Hunger, Religious, Farmer, and Development Organizations Oppose VEETC
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Hunger, religious, farmer, and development groups came together on July 21, 2010 to oppose the renewal of the Volumetric Ethanol Excise Tax Credit (VEETC), which is set to expire at the end of this year. In a letter to the Senate Finance Committee and the House Committee on Ways and Means, the groups asked Congress to refuse to introduce new legislation to extend this tax credit, which costs taxpayers $5 billion a year.
This money ends up in the deep pockets of oil companies, which are already required by law under the Renewable Fuels Standard (RFS) to blend ethanol into their fuel. The US government spends billions of dollars on corporate subsidies every year. In this time of fiscal strain, with unemployment at record highs, Congress needs to be proactive and considerate of spending taxpayer dollars on wasteful subsidies such as VEETC. Instead, we should be investing in programs that increase small farmer stability and encourage food sovereignty.
Our agricultural system is very organized and subsidized. Farmers receive $20 billion per year in subsidies from the US government, yet more than 10 percent of American households feel the pangs of hunger. Corn ethanol production is the primary competitor for land with food production. It raises prices for corn and other grain crops, which in turn puts upward pressure on the prices for meat, dairy, and other essential consumer goods.
Continuing the VEETC subsidy would be a waste of taxpayer dollars that could go towards cleaner alternative energy technologies.