More than two-thirds of senators voted to immediately end an existing 45-cent-per-gallon tax credit for blending ethanol in gasoline that expires at the end of the year. North Carolina Senators Burr and Hagan both voted with the majority. There are still other federal supports for ethanol, such as the blenders credit, which are not affected by this vote.
The real problem with ethanol is the federal mandate that it be added to our fuel supply. There are efforts underway to end that mandate, and for good reason. Read more on the repeal effort at Big Government.
Take a listen to Senator Tom Coburn’s excellent speech on ending the subsidies:
Read more on the subsidy vote at the Financial Times