Senate Democrats had an opportunity to cut billions of dollars in tax breaks to special interests, a political home run if their talking points are to be considered genuine. They chose to not even take the swing.
Of 53 Democrats, 46 voted to keep the current exemptions in place. Another simply didn’t vote.
The industry these liberals didn’t mind cutting some slack for? Ethanol.
Not only did Republicans miss an opportunity to strike a blow for conservative principles by getting government out of the business of picking winners and losers, they passed on an easy chance to turn the political tables.
Democrats have long attempted to brand Republicans as villains always ready to supply their special interest cronies in big business with exclusive tax cuts, all to the detriment of the rest of the country. Yet this week Democrats did just that. On the other side of the aisle, Republicans voted by a count of 34 to 13 to kick the government’s corn habit and raise a bit of revenue.
But don’t give the GOP too much credit. The country is careening towards a fiscal collapse and Republicans couldn’t even agree to cut $6 billion in government meddling.
There is nothing smart or efficient about ethanol subsidies. For every gallon of ethanol added to gasoline, companies receive a 45-cent tax break. The CBO estimated last year that when all is said and done, replacing a gallon of gasoline with one of ethanol costs taxpayers $1.78. According to Energy Department data, drivers get 25% to 30% fewer miles per gallon with E85.
The idea that ending a tax break on a specific product is akin to raising taxes is wrong. Applying taxes without playing favorites and reducing government manipulation of the market are conservative ideals. If good policy and smaller government leads to higher tax revenue, that’s the way things ought to be.
Political and geographic favors are costing the country its solvency. Lack of courage and basic strategy is costing Republicans easy messaging victories. When the bills come due, the U.S. can’t count on a bailout. As for political fortunes, Republicans shouldn’t either.
Matt Wolking is the Executive Producer of The Laura Ingraham Show. You can email him at matt@mattwolking.com.