I noticed this statement listed as one of the pros of ethanol:
Quote:
Increases local and state tax revenue: The American Coalition for Ethanol estimates production will increase local and state tax revenue by about $1.2 million per year.
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This is true in more ways than they intended to admit I think, and also one of the reasons government promotes ethanol use. The actual increase in tax revenue is far greater than 1.2 million.
We are taxed on gasoline by the gallon. You use more gallons to go a given distance on an ethanol blend than you would regular gasoline. Therefore they collect more excise taxes on an ethanol blend fuel because we have to buy more of it than we so straight gas.
Lets do a little math.
Based on my own gas mileage, it requires 79 gallons of 10% ethanol fuel for me to drive 1000 miles. It takes 68 gallons of ethanol free regular unleaded to drive the same distance.
Based on the NC tax rate on fuel, that's an extra $6 per one thousand miles I drive in taxes if I burn the ethanol fuel. Not a lot in itself, until you extrapolate that figure.
Let's say the average driver puts 10,000 miles per year on his car, a conservative estimate for many people. That's an extra $60 per year per person driving.
NC has 6 million licensed drivers, that's an additional $360 million in fuel taxes for the year.
Granted that math involves a lot of assumptions and is entirely based on my personal vehicle, but the point is still made that whatever the real figure is for the increased tax revenue it is a significant number.
Add to that number the increase in sales tax we pay on our food, that the state also gets. Your sales tax is based on the total price of your purchase. Ethanol is one of the reasons your grocery bill is higher every year, and often from one month to the next. As food prices increase, your total grocery bill is higher, and you pay a higher sales tax on it as well.
The American Coalition for Ethanol probably doesn't want to talk about the REAL amount of increased tax revenue because that is coming directly from us as consumers and does not support their cause.