Posts Tagged → economy
A Severance Tax, now?
Talk about an addiction to spending other people’s money.
Yesterday in southeast PA, far away from the communities where this issue is most important and the citizens might not be so welcoming, Governor Tom Wolf staked out his position on creating a new 5% “severance tax” on natural gas from the Marcellus shale feature.
Right now, natural gas is selling at historic low prices, especially here in Pennsylvania. The financial incentive to drill more or spend more money to get more gas is very low, and drill rigs have been disappearing from across the region for a year.
The Saudis began dumping oil months ago, in an effort to punish competing oil producers Iran and Russia, with the secondary effect of dropping gasoline prices so low that the natural gas industry got hit from that side, too.
So now is not only a bad time for the gas industry, it is also a time of greatly diminished returns on investment and on royalties received. Scalping 5% off the top of that is punishing to everyone, including gas consumers, who will see their rates increase proportionally.
Here’s the biggest problem with a severance tax: Pennsylvania already has a 3% impact fee on Marcellus gas, and a Corporate Net Income Tax of 9.99% (let’s call it ten percent, OK?). Most of the other gas and oil producing states have no such additional taxes; their severance taxes are the one and only tax their oil and gas producers pay, not the multiple high taxes and fees drillers in PA pay.
Pennsylvania government is therefore already reaping much higher revenue from the gas industry than other gas producing states. That means that the companies doing business here are already burdened much more than elsewhere.
So adding a severance tax now, at this economically bad time, without commensurately lowering other taxes, or the existing Impact Fee, makes no sense. Unless the people promoting this have an infantile view of how America and business work.
And that right there is the problem. Way too many advocates for tax-and-spend policies like an additional severance tax have a Marxist view of business; essentially, to them, business exists to pour money into liberal schemes.
And speaking of spending, who believes that spending more and more and more taxpayer dollars on public schools, public teachers unions, and public teachers’ pensions, actually equates with better education?
So many studies disprove that (see the Mercatus Center), but it is a liberal mantra that taxpayers must spend ever more of their money to support public unions that support political liberals. And both parents of students and taxpayers alike now correctly see that system for what it is – simple, legalized political graft to fund one political party.
Public schools are mostly a disaster, yet teacher’s unions and their political buddies continue to pound on the table for more and more money. Homeowners are essentially now renting their houses from the teacher’s unions, and proposed laws like Act 76 seek to fix that unfair situation by removing the vampire fangs from homeowners and letting the larger society pay for its expenditure.
Going door-to-door for political races year after year, property tax has been the number one issue I have encountered among elderly homeowners. So many of them can no longer afford to pay the taxes on their houses, that they must sell them and move, despite a lifetime of investing in them. This is patently un-American and unfair.
So Tom Wolf is moving in exactly the opposite direction we need on this subject, and instead of trying to fix the tax situation, he seeks to make it worse. To be fair, Wolf campaigned on raising taxes. He just needs to remember that he did not get elected by voters who want higher taxes, they wanted to fire former governor Tom Corbett.
Forget sexy issues like “climate change,” let’s solve real environmental threats
By Josh First
Pennsylvania’s forests are suffering from a one-two punch-out by both invasive bugs and pathogens that kill our native and very valuable trees, and then by a following host of invasive vines, shrubs, trees, and other plants that are filling the void left after the big natives are gone.
Today yet another bulletin arrived from PSU plant pathology / forestry researchers, noting that ‘sudden-oak-death disease’ was detected on a shipment of rhododendron from Oregon.
Oregon got it from Asia.
Pennsylvania’s forests are becoming full of non-native, invasive plants, bugs, and pathogens. Each of our valuable tree species now has its own specific attackers. God knows what our native forests will look like in ten years.
The Asian emerald ash borer is literally making ash trees go extinct as a species. I see whole stands of forest, hundreds of acres, where not one ash tree is healthy. Dutch Elm disease killed off most of our elms in the 1980s. An Asian fungus killed off the once incredible and mighty American chestnut tree. Forget pathogens and bugs, because lots of aggressive, fast-growing invasive plants are taking up room on the forest floor, pushing out and overwhelming needed native plants. Few if any animals eat the invasives, which are often toxic and low value.
Human-caused climate change? It is a sexy political issue, and it is highly debatable. But forest destruction from non-native invasives is a real, tangible, non-debatable, non-politicized issue we need to address immediately. So many people and wild animals depend upon our native forests, that without them, our rural economies could dramatically fall and our wildlife could disappear.
Forester Scott Cary had this to say, tongue somewhat in cheek: “With the 1000 cankers disease in Walnut now in southeast Pennsylvania, that area is quarantined…maybe we shouldn’t be so hard on black birch and red maple [low-value native species long observed to be acting like aggressive, non-native invasives, and therefore harvested aggressively by responsible forest managers], that may be all we have left to choose from. Of course, Asian long-horned beetle may get the maple, so that leaves us black birch, the tree of the future.”
That is a sad place to be, folks. And to think that so much money is wasted selling the phony issue of human-caused climate change, while real environmental disasters are actually happening…it shows you just how dedicated the environmental Left is to political dominance, not useful solutions to environmental problems.
Happy New Year 2012, Guaranteed!
2012 begins in a few hours.
And what’s exciting to many Americans is that 2012 marks the end of the Obama Experiment.
So many Americans invested in the hokey “hope and change” snake oil, and as New Jersey governor Chris Christie said, four years later America remains hopeless and changeless. Obama has done well at luxurious taxpayer funded vacations, but he has remained aloof and immature throughout his tenure. His greatest distinction is to have become “Divider in Chief,” due to his class warfare methods that pit Americans against Americans.
Watch as Obama gets voted out and the economy turns around in weeks. So here’s to a happy new year, everyone!