Posted on 11/01/2014 6:10:02 AM PDT by truthfinder9
Tom Wolf's $1 billion myth By David Spigelmyer Thursday, Oct. 30, 2014, 8:55 p.m.
Tom Wolf's pledge to add a severance tax on energy producers is irresponsible and does not take into account the downside for most Pennsylvanians and the communities where they live. His potential job-crushing energy tax on shale development would harm Pennsylvania's economy, cost jobs and shortchange the potential benefits for the long-term success of our state. New and higher energy-tax advocates wrongly assume that capital investments being made by the natural gas industry won't be impacted by such a tax.
Wolf, the Democrat candidate for governor, claims his gas tax would generate $1 billion per year if production levels remained the same, but he has no analysis to back his theory. Unfortunately, as is too often the case, political campaigns lend themselves to sound bites and talking points rather than substantive analysis and factual data.
Our industry supports the need for world-class schools and the need to resolve the pension crisis. However, running TV ads with schoolchildren stating the oil and gas industry doesn't pay its fair share and declaring a severance tax will cure all is both misguided and reckless.
Currently, Pennsylvania — which is one of the highest-taxed and challenging business-climate states — is the only state that imposes an impact tax of 3.1 percent (based on actual sales into the pipeline delivery system) on the industry.
The impact tax has generated more than $630 million over the past three years, overwhelmingly benefiting local communities across the commonwealth rather than sending tax revenues to Harrisburg's General Fund for redistribution. Additionally, more than $2.1 billion in other shale-related taxes have been generated across the commonwealth.
It's no wonder that a top Pennsylvania State Association of Township Supervisors official recently stated that local communities “will lose out immensely” if a new energy tax is enacted.
So why risk the thousands of Pennsylvania jobs tied to shale development?
Top organized-labor leaders agree that new energy taxes “will stifle growth” and job creation. In fact, Sean McGarvey, president of the North America's Building Trades Unions, recently said that lawmakers need “to make sure that they don't kill this industry before it has the chance to make the largest impact in Pennsylvania and across the country,” adding: “I wouldn't want to be on the wrong side of history.”
If a crippling tax hike is implemented, the potential for capital to be quickly redeployed is a not-so-distant reality. As energy producers decide to shift capital to more competitive shale plays, it is the local supply-chain companies, typically family-owned small businesses, labor union workforce and communities that are at most risk. We have talented men and women, many who are friends and neighbors, dedicated to delivering on the promise of energy security for our state and beyond who have much at stake.
Let's continue to work together to get this opportunity right and prevent a race to the bottom that will impact job opportunities and potentially thwart the renaissance of new manufacturing through affordable, abundant and “all American” natural gas supplies produced in Pennsylvania.
http://triblive.com/opinion/featuredcommentary/7054262-74/tax-energy-pennsylvania
The Trib is always more or less Conservative and true to form, they elequently expose Tom Wolfe for the sheeps’ clothing he wears
Blame the republican party in PA. Corbett should have been primaried out on his corrupt ass.
All they needed was someone with a pulse (who wasn’t a corrupt mess) that could stand up in front of crowds and tell them he wasn’t going to raise their taxes.
Wolf will be a disaster for the state. Absolute disaster and at the worst possible time.
Liberals hate domestic energy and hope to destroy energy independence for our nation.
If it’s a ‘sin’ to hate Dhimmocrat perfidy, I’m doomed.
Texas has had a severance tax on oil and gas for years - what is the problem with one in PA? I think that sometimes conservatives miss ways for good tax policy to work to the benefit of the public... small tax payers. For example, our severance tax income has allowed TX to have a large rainy day fund - where that money goes as a result we will have an item on the ballot to spend some of it for roads - which means no higher gas taxes.
Tell it to the marching morons who will elect Wolf three days from now.
Given the cesspool of Somalia on the Susquehanna*, the proceeds of yet more tax extortion will doubtless get pissed away on multi-demographic gibsmedats, not to mention the organized crime racket known as PennDOT.
*(aka Harrisburg)
Clearly, you do not understand the issue here in Pennsylvania.
We have an impact fee that guarantees money stays in the local community and county where a well is located.
Pigs, like Wolf, want all the money sent to Harrisburg and then divvied-up by politicians, with most going to Philly & Pittsburgh where there are no wells and gas drilling is strongly opposed.
Rural Pennsylvania has been neglected and abused by Harrisburg. We barely beat back an effort to turn Interstate 80 into a toll road with the money going to fund mass transit in Philly & Pittsburgh...where I-80 is not near.
Wolf wants any revenue from the gas industry to go to teacher’s unions and wasted on our already expensive schools. Of course, property taxes will remain the same.
Pennsylvania has a 3% 'impact fee' instead of severance taxes. The lion's share of the impact fees are directed to the municipalities where the drilling occurs -- in the rural South western and North central parts of the state. This has been a God send for many of these hard pressed communities.
Wolf's plan would send all the money to state government where the bulk of it would no doubt be directed to the corrupt political machine in Philadelphia where zero drilling takes place.
It's just standard Democrat party corruption pushing for the severance tax.
We have a similar piece of stupid legislation on the ballot here in Nevada.
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It is called Question 3 & it taxes any company that GROSSES over $1 Million a 2% tax.
This isn’t a tax on profits—it is a tax on GROSS earnings.
Then the supporters have released a TV ad talking about a hospital that charges outrageos amounts for different kinds of treatment. OF course, they are totally BLIND to the fact that it costs millions of dollars to buy all the up to date diagnostic equipment, build buildings, purchase drugs, etc.
This ad says the hospital grosses $3 BILLION a year.
Soooo—apply a 2% tax to that & you get $60 MILLION in a new & applicable tax as of Jan 1, 2015. That is over an extra $1 Million a week to pay a new tax—and one would have to raise revenues to do so. Obamacare & Medicare won’t pay above a certain amount. Soooo-does the hospital move out of Nevada or do they quit taking those patients??? Either way, I see Nevada residents losing big time. Lots of retired persons in this state, which need more health care than they did 40++ years ago.
How in the world these ad supporters think that ANY business-—not just this hospital-— won’t have to jack up prices even further to recover that tax money, I don’t know.
The only thing I can see for such a tax hammer is jack up your prices-—or MOVE OUT of Nevada.
I am voting against this tax & I certainly hope others also do. Those who support it might find themselves out of a job due to their vote.
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