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Green Scissors 2010 - A refreshing look at government spending

July 22, 2010
Green Scissors 2010 - A refreshing look at government spending

Report suggests cuts to restore the nation's fiscal and environmental health

WASHINGTON, July 22, 2010 - The Green Scissors campaign, a diverse coalition of taxpayer, environmental and consumer groups, today released Green Scissors 2010, a report highlighting government programs and subsidies that its authors believe are wasteful to taxpayers, harmful to the environment and bad for consumers.

Whether one agrees with all the choices for 'green cuts' or not, the report is a refreshing cross examination of potentially wasteful government spending.

Green Scissors 2010 targets four major areas for budget cuts: energy, agriculture and biofuels, infrastructure, and public lands. It notes several recent, substantial victories ending subsidies in the face of special interests' undue influence in Washington.

"For far too long, the federal government has incentivized practices that destroy our environment," said Friends of the Earth Climate and Energy Tax Analyst Ben Schreiber. "This is particularly true with energy. In the fight to combat global warming, we cannot continue to subsidize the harmful practices that have forced us into this dire predicament."

Of the many energy issues targeted in the report, the Coalition took aim and coal, nuclear and the oil and gas sectors. Taxpayers have been subsidizing the coal industry for almost 100 years, says the report. "Thanks to loan guarantees, generous tax credits, and direct investment in coal technology, the coal industry makes enormous profits off these massive subsidies."

ethanolsubsidies

On the agriculture side, the report is highly critical of subsidies provided for the production of corn based ethanol. "Despite its demonstrated environmental damage, corn ethanol production is subsidized through a number of federal policies in the name of clean energy, the most significant of which are the Volumetric Ethanol Excise Tax (VEETC ) and the Renewable Fuels Standard (RFS)."

The VEETC  exempts the ethanol portion of gasoline blends from gasoline
excise taxes and establishes a tax credit for ethanol use. This massive subsidy does not go to family corn farmers or even agro-businesses or ethanol producers. Rather it goes almost entirely to oil companies, such as Shell Oil, that blend the ethanol with traditional fuel.

"Staring down the barrel of record budget deficits, it is well past time for lawmakers to tackle our nation's fiscal challenges," said Steve Ellis, Vice President of Taxpayers for Common Sense. "The billions of dollars of cuts detailed in this report provide lawmakers a veritable menu of policy options that will help our country's bottom line while also helping the environment."

"Powerful corporations and other special interests have too much influence in Washington," said Tyson Slocum, Director of Energy at Public Citizen. "We need to reform a system that allows corporations to charge their pollution to taxpayers' credit cards," Slocum added.

The report was highly critical of the the Army Corps of Engineers that it contends has been a way for lawmakers to bring government-funded construction projects back to their home district. "The agency constructs waterway projects dealing with navigation, flood damage reduction, and environmental restoration. In many cases, these projects are based more on political power than national interest."

highways

A particular zinger is aimed at the Highway Trust Fund (HTF) which receives massive amounts of revenue from the federal gas tax, but which has been overspending its budget for years.

"With record deficits, it is outrageous that both Congress and the administration continue to waste money on programs that poison our air, foul our water and destroy pristine public lands," said Environment America Washington Office Director, Anna Aurilio. "It's time to save taxpayer dollars and the environment," she concluded.

Friends of the Earth launched the Green Scissors campaign fifteen years ago to identify and eliminate environmentally harmful, wasteful federal projects. Detailed sources for the 2010 report can be provided by the primary authors: Autumn Hanna of Taxpayers for Common Sense and Ben Schreiber of Friends of the Earth.

The report can be viewed at http://www.foe.org/green-scissors.

Source: www.foe.org

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