Paper Company Tax Boondoggle: Paying Companies To Add Fossil Fuels

The Nation:

Thanks to an obscure tax provision, the United States government stands to pay out as much as $8 billion this year to the ten largest paper companies. And get this: even though the money comes from a transportation bill whose manifest intent was to reduce dependence on fossil fuel, paper mills are adding diesel fuel to a process that requires none in order to qualify for the tax credit. In other words, we are paying the industry--handsomely--to use more fossil fuel. "Which is," as a Goldman Sachs report archly noted, the "opposite of what lawmakers likely had in mind when the tax credit was established."

Read the whole story: The Nation

Comments

[watchTVgetSTUPID]

It figures. The cap and trade carbon tax will just be more of the same. I am sure the Paper company lobbyists arn't the only ones peddling special interest "gotchas" in the legislation.

[MadCroation]

We need to outlaw all corporations.They are expressly created to usurp the law.

[swan1]

Dick Cheney is connected to the CEO of IP

[RRG64]

Once again we can thank the United States Congress, our tax dollars at work.

[DrVeruju]

There should be a statement carefully decribing the intent of each bill and any action that thwarts that intent should not be allowed to claim legitmacy from the bill.

[sposton]

A perfect example of our "democracy" at work. Corporations can explore the boundaries of what is legal to ridiculous levels with no penalty but see if real persons could do the same. Kleptocracy is very adept at milking the commonweal cow and they won't stop until the cow dies.