No Severance Tax for Ethanol???

Nope, we subsidize ethanol. Now why would that be? Why don't we tax it? They're subsidizing it because the market doesn't want it yet. But they're not taxing (severance) it because they know it'll hurt production.

So why would they subsidize natural gas production? Because it doesn't need subsidies.

They punish the businesses that make money and subsidize the businesses that don't.

Here's the Arkansas News story.

Meanwhile, the governor is quibbling about where the money from the severance tax should go. Here's the link to the AP story.