Senate fails to stop ethanol subsidy

The Senate this week spared the ethanol subsidy, a $6 billion tax break that has been criticized by members of both parties as an unwarranted and wasteful giveaway. For the first time, however, a majority of Senate Republicans voted in favor of killing the tax credit, despite the conservative view that ending loopholes is tantamount to raising taxes.

The measure’s sponsor, Sen. Tom Coburn of Oklahoma, said, “ethanol is bad economic policy, bad energy policy, and bad environmental policy. The days of placing spending programs in the tax code and giving them holy status are over.” Another vote on the issue is expected next week.