Home > Microeconomics, Tax Policy > Questions for Bob Dinneen

Questions for Bob Dinneen

The president and chief executive of the Renewable Fuels Association, Bob Dinneen, takes issue with The Great Corn Con, an article I linked to and discussed here.

He points out that:
1) There’s a lot of corn production.
2) Ethanol avoids, in part, some externalities associated with gasoline.
3) The industry creates value and pays taxes.

I suspect that’s not the problem The Great Corn Con has with the industry. Here are some unanswered questions:

1) If this industry is so productive, why does it require a subsidy?
2) Assuming there is a valid answer to the above question, how long will this subsidy be required? When will we know the industry can survive without revenues from government?
3) Do you favor repeal of the tariff on imported ethanol?
4) If not, is it because it would lower the price domestic consumers of ethanol pay for the product the producers you make represent?

Categories: Microeconomics, Tax Policy
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