This page was last updated on July 25, 2017.
Severance tax offers best budget solution; David Hurlburt (DH); Beaver County Times; July 18, 2017.
As far as I can tell, this is DH’s first BCT letter-to-the-editor. DH’s screen name on the BCT website is mdhurlburt.
DH claims to be a Republican who “voted for Gov. Tom Wolf because he proposed the severance tax on gas drilling.” If all it took was the severance tax to flip DH into voting for Mr. Wolf, he may belong to the wrong party. The group of local Republican impersonators includes Messrs. William A. Alexander, Arthur Brown, Edward J. Hum, Bill Ralston, and George Reese, all claiming to be disgruntled Republicans. He used to be on this list, but Oren Spiegler finally did the honorable thing and ended his charade and deregistered as a Republican. It doesn’t look good for DH, but it’s only one data point. Time will tell.
Below is a detailed review of the subject letter.
“Thank you to The Times for stating the most reasonable solution to the Pennsylvania budget in your Sunday editorial.”
[RWC] Most of this letter came from a comment DH posted on the BCT website. I too commented. My comment and DH’s reply are at the end of this review.
The editorial set the table in the second paragraph with “the $32 billion spending plan was short about $2 billion in revenue.” A better description would be “the $32 billion spending plan was long about $2 billion in spending.” The editorial later asserted “What seems clear is that no balanced budget will be possible without a tax increase of some sort.”
As you’ll read, neither the BCT editorial nor “Republican” DH mentioned spending cuts.
“I am a Republican, but I voted for Gov. Tom Wolf because he proposed the severance tax on gas drilling. Republicans need to adjust their thought process and think seriously about revenue sourcing. Remember your Christian values. Increasing gambling revenue is a counter Robin-Hood approach; tax Pennsylvanians with less and give to those with more.”
[RWC] Who were the other candidates for whom DH voted? What about those of us who are not Christians? Should non-Christians be offended by DH? Don’t non-Christians have “values?”
If providing more gambling opportunities will “tax Pennsylvanians with less and give to those with more,” isn’t that happening already? Shouldn’t someone with DH’s “Christian values” be calling to shut down gambling? Finally, gambling is voluntary. With the exception of winnings from the PA state lottery (not taxed), PA taxes winnings the same as for other income revenue.
As for Robin Hood, a lot of folks like to draw an analogy between their actions/policies and the actions of Robin Hood. There’s usually a problem with that analogy, however. As the legend goes, Robin Hood took from the ruling class and gave to the poor. What too many of us forget is that which Robin Hood took from the ruling class were the confiscatory “taxes” extracted from the poor and the rich who did not support Prince John. Therefore, Robin Hood returned to the poor that which they earned and had been stolen by the government.
“A severance tax diverts money to Pennsylvania that otherwise adds to Texas skylines. Educating Pennsylvania children vs. building Texas skylines seems an obvious choice.”
[RWC] How lame.
Back in 2011, the BCT editorial “Texas and taxes” correctly conceded consumers pay the severance tax. In contrast, this editorial refers to the severance tax as one “on the industry.” The idea is to make us think the tax revenue is “free money.”
Regardless of the tax, consumers always pay so-called business taxes. Keep in mind there’s a vocal group of people trying to kill the natural gas industry in Pennsylvania as in New York. What happens if they’re successful and that revenue stream goes dry?
Neither the BCT nor DH mentioned the Act 13 impact fee. In 2016, counties and municipalities received $173 million.
One reason we tax using rates instead of specific dollar amounts is so both spending and revenue stay in sync. When we increase tax rates it’s an admission spending is out of control.
“Of course getting tax money from those who have enough to spare is a heavy political challenge. That is why we need the compromise of severance tax and liquor privatization. It gives each side a win. Perhaps appealing to Republican Christians would add enough weight to make it work.”
[RWC] Who has enough tax money to spare? This is similar to language used by Barack Obama. Here is the logical extension of this position. Whatever you get to keep from your gross income (wages, interest, dividends, etc. for families; sales revenue, etc. for businesses), DH considers “tax money.” In other words, the fruit of a business’ efforts and a family’s labor belongs to the government and it’s up to the government to determine how much your business or family is allowed to keep.
“We need the compromise of severance tax and liquor privatization?” This is a false choice.
As I mentioned above, neither the BCT nor “Republican” DH mentioned spending cuts.
Though there are exceptions, be wary of those who tell you you’re not a good Christian or whatever if you don’t accept their policy position.
Now let’s take a look at excerpts of comments made on the BCT website.
“mdhurlburt Jul 16, 2017 10:08am
“Thank you for stating the most reasonable solution to the PA budget. I am a Republican, but I voted for Wolfe because he proposed the severance tax. Republicans need to adjust their thought process and think seriously about revenue sourcing. Remember your Christian values. Increasing gambling revenue is a counter Robin-Hood approach; tax Pennsylvanians with less and give to those with more. A severance tax diverts money to Pennsylvania that otherwise adds to Texas skylines. Educating Pennsylvania children vs. building Texas skylines seems an obvious choice. Of course getting tax money from those who have enough to spare is a heavy political challenge. That is why we need the compromise of severance tax and liquor privatization. It gives each side a win. Perhaps appealing to Republican Christians would add enough weight to make it work.”
“sdcox Jul 17, 2017 8:40pm (In case you’re wondering about “sdcox,” our household BCT subscription is my brother’s. I “sign” my comments so they’re not mistaken for my brother’s.)
“Back in 2011, the BCT editorial “Texas and taxes” correctly conceded consumers pay the severance tax. In contrast, this editorial refers to the severance tax as one on “the industry.” The idea is to make us think the tax revenue is “free money.” Regardless of the tax, consumers always pay so-called business taxes. Keep in mind there’s a vocal group of people trying to kill the natural gas industry in Pennsylvania as in New York. What happens if they’re successful and that revenue stream goes dry?
“One reason we tax using rates instead of specific dollar amounts is so both spending and revenue stay in sync. When we increase tax rates it’s an admission spending is out of control.
“Don’t raise any tax rates; cut spending.
“As for the comment mentioning Robin Hood, here’s a reminder. A lot of folks like to draw an analogy between their actions/policies and the actions of Robin Hood. There’s usually a problem with that analogy, however. As the legend goes, Robin Hood took from the ruling class and gave to the poor. What too many of us forget is that which Robin Hood took from the ruling class were the confiscatory “taxes” extracted from the poor and the rich who did not support Prince John. Therefore, Robin Hood returned to the poor that which they earned and had been stolen by the government.
“http://thebirdseyeview.us/pundits/BeaverCountyTimes/edt-11-04-10-Texas-and-taxes.htm
“Robin Cox”
“mdhurlburt Jul 20, 2017 11:08am
“The budget is already passed so spending is not being cut. Therefore we need to find the dollars to match it. The editorial I am referencing states the Legislature is proposing raising gambling revenue to balance it. That is the most regressive form of taxation possible. A severance tax is far better for Pennsylvania residents. The cost you mention is not passed on to only PA residents, but is paid by all who buy the gas extracted in our state. That includes New England, New York, Ohio and overseas markets. Why not tap into that revenue stream? The resource is in PA and there is no choice but to extract it from PA.”
[RWC] The first two sentences make no sense. DH seems to be saying that once a budget is passed, spending can’t be cut but taxation must be increased. Why isn’t the opposite true?
The proposal to increase gambling revenue is/was to increase video gaming and/or “to create 10 ‘satellite’ casinos in smaller markets across the state that would be operated by the current casino owners.” The BCT editorial didn’t mention anything about increasing gaming tax rates.
In the final three sentences, DH appears to think PA is the only source of natural gas for “New England, New York, Ohio and overseas markets.” As a result, PA gas producers could charge customers whatever they wanted. Not true.
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