Presentation on theme: "Economical Impacts of Ethanol. Tax Partial Excise Tax Exemption- allows marketers to sell the ethanol-blended fuels at a reduced price. To promote."— Presentation transcript:
Tax Partial Excise Tax Exemption- allows marketers to sell the ethanol-blended fuels at a reduced price. To promote the ethanol industry, the government has allowed ethanol to be produced and sold at a lower tax rate than petroleum fuel.
Tax Ethanol is presently exempt from 5.3 of the 18.3 cents federal gasoline tax.
Tax According to the American Coalition for Ethanol: “The economic activity attributable to the ethanol industry will generate $3.5 billion in additional income tax revenue over the next five years -- $1 billion more than the cost of the exemption. The U. S. ethanol industry will create a net gain to the taxpayers of almost $4 billion over the next five years.”
Employment Ethanol plants are presently employing people in at least 20 states across the country This industry is responsible for providing 40,000 jobs nationwide These jobs provide $1.3 billion each year to U.S. families It is projected that the ethanol industry will provide over $12.6 billion in wages over the next 5 years
What this means to the U.S. Economy Each year the ethanol industry (directly and indirectly) adds $6 billion to the U.S. economy
Agricultural Benefits In 1994, 535 million bushels of corn were used for ethanol production. In 2001, 667 million bushels of corn were used for ethanol. The demand for corn and other agricultural commodities created by the ethanol industry increases crop values.
Trade Ethanol production decreases the dependence on oil from foreign countries Imported oil makes up about 56% of the oil used in the U.S presently Ethanol production also results in livestock feed co-products, such as corn gluten, which may be traded to foreign countries
Economic Concerns of the Consumer Cost of ethanol-blended gasoline is often the same or lower than standard gasoline to the consumer Ethanol blending can increase the octane levels of gasoline for a relatively low price 1 gallon of ethanol added to 9 gallons of gasoline will raise the octane level of the gas to the next level (i.e. regular to premium,etc.)
References American Coalition of Ethanol http://www.ethanol.org