The Case for Bio Fuel Tax Incentives in the Market Place for Distributors

We have all heard of the tax incentives given to ethanol growers in the Midwest of the United States. Some have even called this corporate welfare although it seems to be presently money well spent in that it is helping us break our addiction to Middle Eastern foreign oil. It is also helping farmers and corporate farmers in the Midwest who have seen a tough time due to droughts and world market price changes.

The tax incentives and subsidies to ethanol producers, refiners and growers has sponsored a new industry and this is also helping now with alleviating at least some pressure on the supply and demand issues with regards to the price of oil. Of course with three dollar per gallon gasoline many consumers are not be leaving it. Nevertheless it is helping.

We must also give tax incentives to ethanol, biofuel and Biodiesel distributors and wholesalers if we wish to make sure these new fuels get to market. By doing so it pushes supply ramp up and increases demand. Since some Oil Companies are vertically integrated that is to say own stations and refineries, it serves them also.

This is how tax incentives to distributors and wholesalers can help us in the United States and trying to break our addiction to foreign oil. We have a goal to increase the amount of fuel that we grow and we are meeting those goals presently. But it will sure take a lot to produce that much, that is quite a bit of fuel, this nation uses lots of it.

Eventually we hope to have over 15% of all the fuel that we use as biofuels. We do not have the ability to make that much Bio Fuels right now, but that does not mean we cannot in the future. It would shave the issues of supply spikes temporarily; we will be helping the steady flow. But we must also realize that China is going to be thirsty and the World market for oil will be huge; need to move now to solve this. Please consider all these issues in 2006.