U.S corn farmers and ethanol distillers are among those celebrating passage of last month's tax bill. A little-noticed provision of the law extends ethanol tax credits ($.45 per gallon, plus a bonus for small producers) and tariffs on ethanol imports ($.54 per gallon), previously set to expire at the end of 2010. Should the rest of us also celebrate? I think not.

U.S. ethanol policy contradicts every principle of sound economics. It encourages use of fuels

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