Pres. Obama Against Subsidies?
President Obama has a history of supporting wasteful government spending (see stimulus, TAA). So it comes as no surprise that he supported ethanol subsidies as a candidate for president. What will surprise you is his sudden turnaround to ending these subsidies. In recent press conferences on raising the debt limit, President Obama has signaled that he is willing to end subsidies going to ethanol companies.
“So I think there are ways that you can essentially take a little over a trillion dollars in serious discretionary cuts, meaningful discretionary cuts, and then start building on top of that some cuts in non-health care mandatory payments, ethanol programs, or how we calculate various subsidies to various industries.”
But let’s remember that just a month ago the Senate voted to end ethanol subsidies, and President Obama threatened to veto.
So yet again, President Obama has flip-flopped on one of his positions, and rather quickly this time. Another favorite pastime of his is to cherry-pick parts of an issue, like the tax code. He wants to end (rhetorically, at least) subsidies for ethanol but supports creating a brand new, massive, subsidy program for natural gas?
“Last year, more than 150 Members of Congress from both sides of the aisle proposed legislation providing incentives to use clean-burning natural gas in our vehicles instead of oil.”
So on the one hand, subsidies can be eliminated to solve our fiscal crisis, and on the other hand we need to create brand new subsidies? It seems the only difference between the two subsidies is one has been proven ineffective and costly, while the other has not (yet, anyway).
Now that the President is open to ending ethanol subsidies, will he come out against the NAT GAS Act?