GOP battle over ethanol heats up: Grassley swipes at Coburn and DeMint

By Greg Sargent

It looks like Chuck Grassley is not happy with fellow GOP senators Jim DeMint and Tom Coburn for calling on Congress to let billions in ethanol subsidies expire this year.

As I reported here yesterday, DeMint and Coburn, two leading conservatives, are calling on fellow Republicans to support letting the subidies expire as a way to prove the GOP is serious about reining in government spending. Just as the battle over earmarks did, ethanol subsidies could put GOP Senators who have supported them in the past -- such as Grassley and Orrin Hatch -- in an awkward spot, driving a wedge between them and conservatives who want a harder line on spending.

Now Grassley has responded to our story, firing off an angry Tweet at DeMint and Coburn, asking them rhetorically if they're also willing to back the expiration of tax subsidies for the oil and gas industry:

WashPost reports 2 of my colleagues want sunset ethanol tax credit R they ready sunset tax subsidies oilANDgas enjoys?

Coburn, however, appears ready to accept Grassley's challenge. His spokesman, John Hart, emails a response:

"Every aspect of the federal budget should be reviewed. Nothing should be off the table. Congress has to focus on the national interest, not the parochial politics of the past."

With Coburn throwing down the gauntlet and saying not even subsidies for the oil and gas industries should be off the table, it seems like there's a clear opening here for an unorthodox alliance between conservatives like DeMint and Coburn and green groups who also condemn such subsidies. It's unclear as of yet how hard DeMint and Coburn will push this crusade, but Coburn in particular does seem pretty serious.

While the issue could divide Dems along regional lines as well, it seems more directly relevant to the GOP as a clear test of how serious they are about living up to their anti-spending rhetoric. And Senate Dems may have an opportunity to drive a wedge into the GOP caucus over the issue, though it's unclear whether they have any intention of seizing it. It'll be interesting to see where the debate goes from here.

