Monday, October 1, 2007

Baucus’ Proposed Offsets for Farm Bill Tax Credits Get Mixed Reviews

From Congressional Quarterly:

Senate Finance Committee Chairman Max Baucus, D-Mont., may seek to require some foreigners working in the United States to pay Social Security taxes and to pare back the ethanol tax credit to help offset the cost of proposed new tax credits for farmers.

...Decreasing the 51-cents-per-gallon ethanol tax credit by 5 cents would save about $854 million over 10 years. That provision would take effect only after annual ethanol production has reached 7.5 billion gallons. Even so, that provision could irritate lawmakers from corn-producing states and senators who pushed for the current law to spur biofuel production in the heartland....MORE