Tax Breaks

Dems See Opening To Push GOP On Taxes After Ethanol Subsidies Vote

Benjy Sarlin | June 15, 2011, 3:01PM

Sens. Chuck Schumer (D-NY) and Tom Coburn (R-OK)

Looking to exploit a rare rift between Republicans and anti-tax groups, Sens. Chuck Schumer (D-NY) and Bob Menendez (D-NJ) renewed calls on Tuesday to include revenue increases in any deficit deal.

Some 34 Senate Republicans voted for an amendment ending ethanol subsidies on Tuesday, despite warnings from anti-tax crusader Grover Norquist that dropping tax credits counted as a tax hike. The divide over the issue is complicated and hinges on regional factors in both parties, but Democrats largely voted against the unsuccessful amendment due to stated objections to the procedure by which it was brought up.

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Pres '12

Pawlenty In Iowa: Phase Out Ethanol Subsidies

Eric Kleefeld | May 23, 2011, 2:42PM

Former Governor Tim Pawlenty (R-MN)

Former Minnesota Gov. Tim Pawlenty made a potentially risky move during his campaign launch speech in Iowa: he called for a phaseout of ethanol subsidies.

"The hard truth is that there are no longer any sacred programs," said Pawlenty. "The truth about federal energy subsidies, including federal subsidies for ethanol, is that they have to be phased out. We need to do it gradually. We need to do it fairly. But we need to do it."

Many political observers have long said that Iowa's place at the kickoff for presidential nomination contests has ensured continuous support for ethanol by national politicians. As a counter-example, Sen. John McCain (R-AZ) has long opposed ethanol subsidies, and as a result he largely skipped the 2008 caucuses. McCain placed fourth in the caucuses, and in the 2008 general election he lost Iowa by just under ten points.

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