LECG Study Shows Ethanol Tax Exemption Increases U.S. Government Revenues and Reduces Dependence on Foreign Oil

GrainNet.com
Date Posted: November 19, 2008

Wayne, PA—The federal investment in ethanol over the past three decades has yielded billions of dollars of economic gain, according to a report released November 17 from economic consulting firm LECG, LLC.

The report concluded that each dollar invested in America’s ethanol industry in the form of the federal excise tax credit returned nearly $5 to federal, state and local government and the economy as a whole.

According to the analysis, the tax provision has not only increased federal tax revenues, but also reduced imported oil expenditures and put more money into consumer pockets.

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Another report released by LECG on Nov. 18:
Economic Contribution of the Partial Exemption for Ethanol From the Federal Excise Tax on Motor Fuel Increased revenues and reduced dependence on foreign oil