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Turkey Farmers Squawk Over Ethanol Tax Break

by 5m Editor
26 November 2010, at 10:36am

US - The debate over tax breaks is even touching Thanksgiving feasts.

Turkey producers are lobbying Congress over the proposed extension of a huge federal tax subsidy for ethanol, the biofuel additive, The Wall Street Journal reports.

That’s because turkeys and ethanol are both produced from the same basic product – corn – and turkey producers worry that the ethanol tax credit is artificially driving up the price of their feed.

The National Turkey Federation wants the credit to be overhauled and eventually rolled back, according to the group. The ethanol credit and another break for small ethanol producers are among the temporary expiring tax breaks for businesses and individuals that Congress will consider extending in December.

As reported by Tax Analysts, Turkey Federation officials have seen indications lawmakers won’t simply extend the ethanol breaks again, as they have in past years. The federal government’s grim fiscal outlook is causing lawmakers to look for ways to cut spending and trim tax favors.

Still, temporary tax breaks are a tradition that’s almost as beloved in Washington as Thanksgiving. Expect the ethanol break to return next year too.