E85 tax credits (and all other tax credits) are disguised as free money

I have a theory about the finances supporting the e85 project in Newark and the ethanol industry in general. My theory is that this is a boondoggle designed to produce a feel-good product that can be supported only by government - meaning tax money - and not by the marketplace.

A little peek at what probably is a monumental tax-giveaway came this morning at the Advocate web site, where it was reported that E85 would be the benefactor of an Ohio ethanol tax credit of $217,509 for seven years (meaning I think, that much for each of the seven years, but we'll see).

We've read so much about tax credits cloaked as free money that the real implications of them seem to escape us. When tax credits are given to a business, then tax penalties are levied on everyone else. It's that simple.

Tax credits, unlike what governments would like us to remember, are not free. They are expenditures of tax money - by governments - for tax-privileged businesses.

Stay tuned.