Senate Passes Repeal Of Ethanol Subsidy

Just a couple of days after a similar bill failed, a large bipartisan majority passed a bill to repeal six billion dollars in subsidies for the ethanol industry.

Some conservatives are lambasting Republcians for voting for a tax increase. But the subsidy constitutes a tax expenditure, which is a means of using the tax code to grant monies to entities in lieu of an appropriation that might be politically unpalatable.

No existing tax rates were changed by the legislation.