Is the use of corn ethanol a form of regressive taxation?
Ethanol production, mainly corn based, has increased dramatically. Substantial volumes of corn are being used to the extent it is affecting food prices. Congress has avoided increasing the gasoline tax because it would affect adversely the lower income people (regressive taxation). An increase in the gasoline tax would affect lower income people more than higher income people. However, there are options for lower income people for transport other than private vehicles and, hence, they can avoid the higher taxes. Buying food is not an option – an increase in a lower income’s food budget seriously affects their spending options. I believe that, aside from corn being a less feasible ethanol source, our Government’s policy on corn subsidies is, at best, ill advised and should be changed.
