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>I'm not convinced of the strategic importance of ethanol in the grand scheme; the US produces more of it because the subsidy creates that incentive. Yes, that's the intent. Whenever you subsidize something, you get more of it. If you're looking for strategic rationale, the US relies much more on gasoline than, say, the EU. Couple that with the fact that US strategic oil reserves are at the lowest levels in 40 years, that only leaves about a month of fuel in the reserve at current usage. Meaning, there is a strategic need to have the infrastructure in place to supplement fuel supply if needed. Even if we don't need it now, the lead time for building out infrastructure is long enough that is makes sense to have slack capacity in place now. >It's not abstracted away as healthy eating is concerned. Overconsumption is downstream. Corn subsidies are abstracted away. They're related, but not directly considering the other uses of corn. Irrespective of that point, I think we may have lost the thread here. We don't seem to disagree on the central premise that overconsumption of calories is the root issue. The original claim was that a sugar tax would help remedy this issue. The counter-claim was that removing corn subsidies would be a better approach than a sugar tax. My point is that the counter-claim is lacking nuance, and ignores all the second order effects. I'm not against removing subsidies, but I would want someone to acknowledge how they would mitigate the negative knock-on effects. What you've presented is a bit hand-wavy for my taste, implying we can just swap this crop for that and ignore concerns related to strategic fuel, agricultural stability, and costs. In the context of all those secondary and tertiary impacts, it seems like a direct tax (like a sugar tax) is preferential. I probably wouldn't limit it to just a sugar tax though, and would look to target other food that leads to overconsumption (including those that aren't disproportionately affecting lower socio-economic groups), and ideally making healthier choices less expensive if we're making the others more costly. |
> In the context of all those secondary and tertiary impacts, it seems like a direct tax (like a sugar tax) is preferential
Not to voters. Taxes are unpopular, ending a subsidy to a small powerful cohort would be relatively more popular (in terms of messaging I mean, the end result would still be that consumers pay more for sugar, but of course the govt spending less frees up spending for other things). However, farmer support is right-coded which would lead to opposition by right-wing pundits and media.
It's a toss-up. A tax could be effective, but I don't agree that it's necessarily more viable or palatable. It's probably less-so. Hence I would pitch ending or curbing the subsidy.