Key Senate lawmakers have reached a deal to end two ethanol subsidies by the end of the month, sooner than expected and a sign of how tax policy can change as attention focuses on the deficit.
Sen. Dianne Feinstein (D, Calif.) said in a statement that she had reached an agreement with Sens. Amy Klobuchar (D, Minn.) and John Thune (R, S.D.) under which a 45-cent-a-gallon tax credit for blending ethanol into gasoline would expire on July 31. A 54-cent-a-gallon tax on imported ethanol would also expire at the end of the month. [WSJ]
This aired last last week after the Senate voted to repeal tax credits for the ethanol industry and you tell that LO’D can barely contain his glee over the result.
ATR is characterizing this as a three-way makeout session between Coburn, O’Donnell and Reich so they do appear be getting a tad defensive.