Two years in Washington have started to make me feel jaded. I've come to expect that even nobly conceived laws will be manipulated and distorted for private ends. But once in a while I hear a story that gives me the queasy feeling that I'm nowhere near cynical enough. Such is the case with the tale of the paper industry and the alternative-fuel tax credit. Full Story »
Posted by Glenn LaBauve
This article describes how the paper industry is gaming the system (in this case exploiting an alternative fuel tax credit) to make an undeserved profit.
The reasons that taxes can either be fair or simple are woefully shown by this boondogal. When it comes to taxes fair and simple are diametricly opposed
The devil is in the detail. The bill should have read a subsidy for those who increase the amount of biofuel in their fossil fuel. The paper industry used to use 100% biofuel, now less so they should get a negative subsidy (a tax). How often good intentions result in the oposite effect from the intended.
Yes, it illustrates the way well intentioned pieces of legislation get perverted. But there's one very interesting line in paragraph 3: "The massive tax subsidy has barely been reported in the press...." Or, no print or other media could be bothered to look beyond the obvious, no 'whistle blower' came along, and those who did note it were the much despised investment houses.
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