Originally Posted By: 3311
Originally Posted By: mechanicx
And the E10 drops milage by probably up to about about 4-5%. And you're paying as much or more for E10, plus more for food products on top of the subsidies. Sounds like total economic and enviromental failure for everyone but the corn growers and ethanol producers.
You forgot the government, that reduction in economy also increases fuel consumption thus increasing tax revenue.
Exactly.
Also, E10 maybe be subsidized by increasing the price of non-E10 fuel. If older cars, and first generation VW FSI engines, develop problems due to E10, then it's of course good for business, which in turn increases tax revenue. The taxman always laughs all the way to the bank.
Conservation also leads to an increase in taxes. After all, if people use less, the poor government has to increase their "fair share." There is no escape.