Senator John Kerry is incensed. He used the word “cheat.”
Senator Jeff Bingham insists Congress was not trying to make a tax loophole.
The fracas is over a four-year-old tax credit given to companies that mix biofuels with diesel. Congress wanted to encourage “greener” burning.
Well, it seems that paper companies have been burning a bioproduct in their plants for years, something called “black liquor.” It doesn’t sound green, but it is made from wood product. In response to Congress’s program, paper companies have taken to mixing it with diesel to qualify for the tax credit.
It wasn’t what Congress intended. But Congressfolk should hardly be surprised. A law has to apply across the board. You can’t make a general rule and then say, “Uh, no: We meant it to apply only to those businesses over there, not these ones over here.”
The New York Times notes that the scandal surfacing, now, might prove especially inconvenient for Congress, as the public roils over business and banking bailouts.
The congressional brain trust meant to give incompetent bankers billions. They didn’t mean to give International Paper $71 million, or Verso Paper $29.7 million.
Despite this, Congress has to live up to its own words. Not its intentions. In this case, Congress wants to blame corporations, not themselves. We’ll see if the august body of social engineers can pull that trick off.
Obviously, like Kermit the Frog, Congress is finding that it’s not easy being green.
This is Common Sense. I’m Paul Jacob.
4 replies on “The Black Liquor Tax Credit”
[…] The Black Liquor Tax Credit […]
Ah yes, liberals who now control Washington try to create special legislation that benefits their “green industry” buddies. Then, suddenly, out of the blue, “other companies” utilize the same legislation & they too benefit from the intended “green industry” benefit plan.
So, now, we must not allow that must we? We must not allow entrepreneurial innovation in the free market. Oh no! Only those who liberals intended to receive a benefit must actually receive a benefit. All others need not apply & any who actually make use of such legislation for their own benefit, must be contained. Congress must devise a means to deny such free market enterprises from using their own abilities to benefit themselves.
After all, only those businesses that liberals in power can control & those businesses that liberals approve of, are allowed to actually benefit from actions of liberals.
You free market guys who take liberal legislation & through your own imaginations develop means to benefit your free market companies, must be rebuked for your enterprising attitudes & actions.
If actions are taken to deny these companies this benefit, especially since it is in compliance with the legislation Congress just passed & is perfectly legal to do so, then lawsuits need to be filed & America needs to understand what is happening. If liberals mean ONLY they & their allies are permitted to benefit from legislation & if others try they will face Congressional actions to deny them such benefits, then we have a serious problem with law in our land.
Laws are meant to benefit all. To decide only special companies are permitted to benefit, means we have politicians deciding winners & loser, but worse we have politicians deciding to punish any who are not in their favor. That makes us a real banana republic & it also means there is no longer a rule of law in America, but a special system designed to benefit those in favor & not others.
Suddenly Lady Justice is not blind, but selective based on association.
If Congress must live by its words and not its intentions, how does the judiciary get away with interpreting the intentions of the Constitution and not its words?
It’s Not Easy Being Green…
Congress is befuddled, and mad. They tried to give a tax credit to their friends, but now they have to give one to their enemies, too. “Well, it seems that paper companies have been burning a bioproduct in their plants for years, something……