The Ethanol Tax Credit -- It's Worse Than You Think | Jerry Taylor and Harry de Gorter | Cato Institute: Commentary

The Ethanol Tax Credit -- It's Worse Than You Think | Jerry Taylor and Harry de Gorter | Cato Institute: Commentary: "The nonpartisan Congressional Budget Office (CBO) recently issued a report on how the corn-ethanol tax credit costs $1.78 to reduce one gallon of gasoline consumption and $754 to reduce one ton of greenhouse gases. The Wall Street Journal immediately noted that 'to put that [latter] number in perspective, the budget gnomes estimate that the price for a ton of carbon under the cap-and-tax program that the House passed last summer would be about $26 in 2019'.

While this study is being used by critics of the tax credit — which will cost about $30 billion over the next five years and is up for reauthorization this year — the CBO nonetheless severely underestimates the true costs of the ethanol tax credit in their calculations"