Many years ago, I wrote an article on the research of Cornell University professor David Pimentel.
Pimentel, a geneticist and evolutionary biologist, claimed it takes more energy to produce ethanol from corn than the combustion of ethanol yields. Because of this fundamental input-yield problem, corn is a really lousy crop for making ethanol, Pimentel said.
This seemed to me like a bit of a problem. After all, about 40 percent of the U.S. corn crop is used to make ethanol. There seemed a certain madness in spending billions of taxpayer dollars on subsidies to turn our food into fuel, especially when many people around the world go hungry. Alas, my article on Pimentel’s research was not well received. I was living in Iowa at the time (aka the Corn State), where ideas critical of corn or ethanol are, to many, a form of local heresy.
I bring all this up because of an article I read in Investor’s Business Daily last week. Here is what it said:
“America's long war on fossil fuels is destroying the famed American prairie.According to a report by the Organic Consumers Association, 95% of the 240 million acres of prairie land that once blanketed the middle of our country, from Texas to North Dakota, already is gone. Only isolated pockets of prairie tall grass, some 35 million acres set aside for soil and wildlife conservation, remain. And that — largely in the Great Plains — is at risk of being destroyed.Among the factors most responsible for this tragic loss of our prairie heritage is the federal renewable fuel standard, a congressional mandate requiring refiners to mix renewable fuel (mostly corn-based ethanol) with U.S. gasoline, diesel, jet fuel and heating oil products.”
It's a stunning development. But one person unlikely to be surprised by these result is Pimentel. He predicted this course more than a decade and a half ago.
"Abusing our precious croplands to grow corn for an energy-inefficient process that yields low-grade automobile fuel amounts to unsustainable, subsidized food burning," he told the Cornell Chronicle in 2001.
What’s strange is that conservative and liberal thinkers for years now have generally agreed that the federal government’s ethanol regulations have been a disaster—both to the environment and the economy.
Still, the regulations persist; they have merely changed. Federal ethanol subsidies were allowed to expire in 2011 to great fanfare. Corn farmers hardly cared because by that time the Renewable Fuel Standard (RFS) (established under George W. Bush) had created an artificial, government-guaranteed demand for corn that kept prices high. As Kevin Drum of Mother Jones wrote: the subsidies are not gone; they are just better hidden.
If ethanol mandates are as harmful as both many liberal and conservative thinkers claim, how do they persist? I suspect it comes down to the world’s second oldest profession: money politics.
As the EPA chart below shows, the RFS requires 25 billion gallons of renewable fuel to be blended into transportation fuel in 2017, an amount that will only increase from year to year until 2022.

That creates a lot of demand, and high demand means high prices for growers, who are organized and know how to lobby lawmakers.
The IBD article says “kicking the ethanol habit should be as much of a no-brainer as buckling up before starting a car.” This sentence assumes, of course, that reason still governs in our nation’s capital. Time will tell.
--
[Image Credit: By PD-USGov-Interior-FWS [Public domain], via Wikimedia Commons]
This post How the Ethanol Mandate is Destroying America’s Prairies was originally published on Intellectual Takeout by Jon Miltimore.











That’s a question few Americans would ever want to confront, yet many Americans living abroad are now having to answer.
A little-known tax law, known as the Foreign Account Tax Compliance Act, has resulted in some foreign banks no longer serving Americans.
The law, signed in 2010 by President Barack Obama, was intended to make it harder for Americans to keep money overseas and out of the reach of the IRS. The primary target was rich Americans allegedly hiding money from tax collectors.
Last year, 5,411 people renounced their U.S. citizenship, the largest number of published expatriates in one year, continuing a four-year streak of record-breaking numbers.
The Foreign Account Tax Compliance Act requires foreign financial institutions, such as banks, to identify and report to the United States most types of transactions for all American clients.
These new regulations are enforced by the threat of applying a 30 percent withholding tax on revenues generated in the United States by the noncompliant foreign financial institution.
The reporting burden and withholding penalty faced by foreign banks trying to comply with the new regulations has made it easier for some Americans to renounce their citizenship than to find a bank that is willing to bear the bureaucratic costs of complying with the law.
These penalties are not just hitting the rich, and they are not just harming tax dodgers. The cost of complying with this law hits every American living overseas, not just those targeted by the original legislation.
Middle-class Americans living abroad who are fully compliant with U.S. tax laws are losing their mortgages, business bank accounts, and personal banking services. The Foreign Account Tax Compliance Act has unintentionally ruined some Americans’ livelihoods.
To add insult to injury, the cost of implementing this law may soon outpace the money that it brings in.
Furthermore, the direct cost to taxpayers does not include the compliance costs to financial institutions. A legal challenge to the law in 2015 estimated compliance costs alone were on track to total more than the 10-year revenue estimates.
These regulatory costs can discourage international business, slow investment, and hamper the global economy.
The root of the problem is more than just compliance costs, it’s the U.S. government’s presumption that it is entitled to your money even if it’s earned in another country.
The U.S. is one of just a few countries that claims taxing rights on labor income earned abroad. Such a system of worldwide taxation hurts the American economy and makes it much harder for Americans to live abroad
Hopefully, relief from this law is around the corner. Rep. Mark Meadows, R-N.C., and Sen. Rand Paul, R-Ky., recently released a bill that would repeal the onerous regulations.
Congress and the IRS should focus on the U.S. domestic tax system and leave Americans living abroad alone. The Foreign Account Tax Compliance Act is yet another example of continued government overreach.
Hopefully, tax reform will bring with it relief for all Americans—including those living overseas.