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Gov. Wolf is right to insist on gas tax; Joe Kaldon; Beaver County Times; September 15, 2015.
Below is a detailed critique of the subject letter.
“It was fascinating to read about the bewilderment of local Republicans during a recent breakfast at posh Montour Heights Country Club that was hosted by the Pittsburgh Airport Area Chamber of Commerce.
“I’d like to spell out for them one reason I voted for Gov. Tom Wolf, along with 55 percent of the electorate. It is my hope that the governor will veto any budget proposal that doesn’t include a severance tax on natural gas. It’s not good stewardship of our natural resources to allow out-of-state companies to pull gas out of the ground and export it out of state without paying a severance tax to support the society and infrastructure that existed here before they arrived; an infrastructure they’re now using to make money for themselves.”
[RWC] It looks like Mr. Kaldon would support Gov. Wolf shutting down the commonwealth government over a new tax. Isn’t “shutting down government” verboten?
“Every gas-producing state has some form of severance tax, and New York has even banned fracking, so there’s no need to worry about gas companies going elsewhere. They’re not going to walk away from an estimated (by the Philadelphia Federal Reserve Bank) $1 trillion or more worth of gas over a 5 percent tax.
“Overall, it’s good that Gov. Wolf vetoed the GOP budget. Several credit downgrades in recent years, when the GOP had control of both the legislative and executive branches, have proven that the GOP is incapable of managing the finances of the state of Pennsylvania.”
[RWC] According to the Tax Foundation, PA’s business tax climate already ranks 34th for 2015, three positions worse than 2014 and 13 positions worse than 2012.
Mr. Kaldon failed to mention PA has an impact fee in lieu of a severance tax. According to the Post-Gazette, “Pennsylvania communities to share $223 million in drilling impact fees” from 2014.
You may recall even the BCT finally conceded taxing Marcellus gas is “a tax that is paid by consumers” and acknowledged “Raising taxes could slow the economy.” No mention of that here, though.
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