Posts Tagged → gas
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.
Tom Wolf….you’ve got to tell us your plans
Tom Wolf may be a heckuva nice guy, and an ethical boss. By all accounts these are true.
But he has cruised to a lead for Pennsylvania governor on these two assets alone, and they’re insufficient.
On nearly every other political issue he is evasive, or committed to regressive actions that will harm Pennsylvania. Taxes is one of his evasive issues, and I’m not alone saying we are all taxed enough.
I’d like to hear Wolf make concrete commitments to lower business taxes equally if he seeks to raise a five percent gas drilling tax. Otherwise, he’s trying to kill the golden goose instead of patiently waiting for her to lay one golden egg at a time. Gas drilling has saved our economy, hands down.
My suspicion is that Wolf will remain evasive until the very end, and voters will move toward Corbett as a result. The election is likely to be a three point spread: Corbett by 1% or Wolf by 2%. The “Dewey beats Truman” mindset has already taken hold among Wolf’s supporters, and a huge upset is likely in the making if that continues.
Obama & Bill Clinton officially embrace imperialism, then poormouth liberty, independence, and freedom
As anyone paying any attention to politics already knew, neither Barack Hussein Obama nor Bill Clinton are committed to liberty, freedom, or independence, and like the good power-hungry statists they are, they openly embrace imperialism and military occupation. When it serves their interests.
Today the mainstream media prominently ran two statements, one by each man.
Each statement began with a dissembling lie about how neither Obama nor Clinton really have anything to say about Scotland’s wish for independence from the mis-named “United Kingdom.”
You know, kind of a disarming warmup for the dagger-in-the-chest that is coming right behind it.
You know, they support the “united Kingdom” that was only united through Britain’s imperialism, deceptive diplomacy, military conquests, occupation, land theft, genocide and ethnic cleansing, and religious totalitarianism.
After the blase disclaimer, each man then goes on to say that Scotland should not become independent from its longtime foe, occupier, and vampire-like neighbor, England aka Britain, home of the Britons (not the Scots).
Both Clinton and Obama provide generic and vague sentimentalist goo as their supporting argument. Both rely on some version of “We know you don’t like it, but it really is best for you, the little people.”
See, Scotland owns a lot of oil and gas fields that will instantly give it financial independence from Britain, which in turn may become the weak sister, not the domineering exporter of bad TV and cute Cockney accents it is now.
I vote for freedom for Scotland. I vote for independence from Britain, like we Americans have. I vote for liberty from Britain’s insane laws that have turned justice upside down.
If anyone from Scotland reads this, please know that we Americans love our independence from the damned British, and we hope you do, too.
“Full service,” re-defined
If you get gasoline in New Jersey, you can’t speed up the process and put the gas in your car at your own speed.
By statute, only station employees can dispense gas.
Its called “Full Service.”
In ages bygone, that meant full service, as in oil check, tire pressure check, window wash. You’d tip the guy fifty cents. It meant something.
Try asking for those services today. You’ll get a laugh from the young Sudanese guy working the pumps. He moves at his own pace. Fast but not quick.
And so here you are, a hostage in your car, ready to pay, ready to leave, but by law stuck waiting on the guy at the service end of the spectrum.
It’s just a bit assymetrical. It’s not what you’re paying for. It’s not what you need, or want, or used to get.
But, by God, it’s what the government is giving you, and you’ll take it. Or else. Check out the reports of irate drivers serving their own cars gas. They actually get arrested. Big crime!
New Jersey is one of the most liberal states in America. Expect more models of the Garden State’s “full service” to creep into your life in nearly every aspect of your life.
This is freedom, redefined.
Natural resource envy
Being a conservationist, I’m on a bunch of email lists about conservation, natural resources, environmental protection.
Why and how groups send emails decrying natural resource companies, while happily using those same resources, like oil, coal, and natural gas, is beyond comprehension.
Oil and gas companies serve a demand by consumers who want their cars to run, their stoves to cook.
Coal powered electricity is ubiquitous. It runs hospitals and schools, as well as your home and place of business.
Somehow, in a twisted way, the companies supplying the power are “bad,” and the consumers are off the hook. As if these companies operate in a vacuum.
Credibility suffers when you’ve got two or more standards for the same behavior. It’s sad because environmental quality is important. My request to conservatives is to not dismissively abandon the field of battle, and don’t let the far left define or frame the issue, either. And don’t let the leftist groups get away with demonization of companies the world depends upon, unless those same groups are willing to generate their own power and transportation fuels.
Syria contrasts a world upside down
The sadistically brutal civil war in Syria has highlighted key foreign policy issues, both on the right and the left.
First, oddly but on second thought, unsurprisingly, the left’s International Human Shields group has waited until now to announce its intention to field live humans to block potential American bombs in Syria. These folks never interceded to block Assad’s conventional or gas missiles falling on hundreds of thousands of women, children, and elderly, nor did they stand in Israeli schools and homes as tens of thousands of missiles rained down for years from Gaza.
Somehow, in their twisted minds, American bombs on Syrian military targets are bad, Syrian bombs on civilians are not an issue. The left hates American freedom, loves dictators. It’s been this way since the left’s embrace of the Soviet Union because it opposed the US. That wasn’t so logical either, but at least these folks are consistent. But when they say they are anti war, know that it’s untrue. Russia’s invasion of Ossetia and Chechnya didn’t warrant a peep. America invades the country that harbored Osama Bin Laden, and they raise hell.
Second, conservatives are driven by both genuine anti war concerns and also a desire to put Obama in a box. Obama is incompetent, but conservatives should not make matters worse. Rather, it stands to reason that conservatives stand against dictators gassing their own citizens. America can and should do much militarily to eliminate Syria’s chemical weapons, without opening the door to Islamic kooks. If there’s one thing America stands for, it’s a strong opposition to dictators gassing civilians.
Dithering and weakness as foreign policy goals, tools
The past weeks, really months, with the famous Obama Red Line, have been filled with incredible dithering and rudderless, terribly public waffling and indecision. America’s allies believe they cannot trust America, and America’s enemies are clearly unafraid of us. With a slavish mainstream media that seeks only to bolster Obama, somehow all this failure will be cast as a really slick foreign policy. What I did enjoy was how even the appearance of a threat of American bombing sent Syria’s army scurrying from its daily routine of raping, torturing, and pillaging civilians, and either deep into hiding, or deep into defection.
So in a way, we can say that even Obama’s dithering helped slow down the Assad regime’s murderous onslaught.
I’ll take what I can get, and give credit where it is due: Obama, you are the least qualified, most inexperienced person America has ever had as president, but even your incompetence can be occasionally helpful.
That’s it, Obama is like Inspector Clouseau…
Comeuppance 101
If you run for US president on a platform of blaming the incumbent for everything, you just might find yourself in the same position some years later, with far less to show than that “failure” before you had.
Obama’s failure to create even a small international coalition to surgically remove Bashar Assad’s weapons of mass destruction is a result of his mistreatment of America’s key allies (Britain, France, Israel, Poland), his confused messages (pacifism vs. ‘red lines’ etc.), willingness to toss old friends overboard for whatever end…(Mubarak in Egypt), and his arrogant personality.
None of America’s former allies know if they can really trust Obama, and all of America’s avowed enemies believe he is a paper tiger.
Ye reap what ye sow….and more children in Syria will be gassed by Assad as a result. If this is Hope and Change, so be it. Most people call it disaster. It’s an expensive form of Comeuppance 101.
Disconnect between Democrat chiefs and braves on gas drilling
Interesting wrinkle hasn’t really bubbled up yet into the governor campaign. That is the odd policy adopted a month ago among state Democratic leaders to embrace a gas drilling moratorium.
While to my knowledge none of the Democratic candidates for governor have embraced this policy, only one that I know of has strongly repudiated it. That’s John Hanger.
Hanger recently wrote that “if you support environmental quality, you support gas drilling.”
While Hanger’s polling numbers are on the radar but low among a field of candidates so large that it looks like a Hubble photo of some huge constellation, his prospects are looking better and better. By hewing to a moderate, common sense set of policy positions, Hanger is increasing gathering followers. My understanding is that Hanger does not support more gun control, which is my litmus test for a serious candidate in either party.
Natural gas is about the only thing going on in Pennsylvania right now. And for the future, too. Prospective leaders like John Hanger get my respect for acknowledging that and not playing to fake fears.
Do you believe in your private property rights?
Isn’t it intriguing that the establishment wings of both the Democrats and the Republicans believe that your private property rights are actually theirs?
Several weeks ago, the Pennsylvania Democratic Party took a position on natural gas drilling in deep shales, saying that a moratorium on “fracking” is needed. That adds up to the government taking away from you the right and ability to develop a resource on your property, without compensating you and without demonstrating good cause.
When I inquired of a bewildered Democratic operative whether or not the proposed fracking moratorium would include nitrogen, or be limited to just water, he said “I don’t know, I don’t know. I cannot believe they did this. It makes no sense.” To be sure, it’s an indefensible and politically suicidal position. Unsurprisingly, I don’t believe any of the Democrat gubernatorial candidates have adopted this fatally flawed position.
This week, Republican Governor Tom Corbett signed into law a bill that, aside from two deadly sentences, was an otherwise fine solution to a lot of outstanding, unresolved problems associated with deep gas extraction.
Two deadly sentences are an issue, however, because they basically strip landowners\ oil, gas and mineral owners of their ability to negotiate new leases when the prior one has ended. The new law is a theft from you and a gift to a select industry. Gas is a good and necessary industry, for sure, but no more deserving of a free ride on someone else’s dime than you or I.
The arguments made in favor of what I would call ‘forced apportionment’ were ridiculous and laughable, except that so many private property rights have just been in effect taken and handed over to industry, so it is not funny. Apportionment is a term never used before in Pennsylvania OGM, and the 11th-hour two-sentence amendment to the bill lacks a definition of it. Surprise, surprise.
The worst argument is that by being forced into a “pool” of landowners, basically a fragmented production unit, this new law is guaranteeing that landowners will get paid (!). The state minimum payment, by the way. Never mind that you are due that payment already, and you’d prefer to renegotiate an expired lease on your own, thank you very much.
My sense is that these two sentences could cost Governor Tom Corbett his governorship and several lawmakers their seats. State representative Garth Everett and state senator Gene Yaw were the sponsors of the two sentences. Both are from Lycoming County, a place where private property rights are still held dearly and natural gas is plentiful.
How sad that the establishment wing of the Republican Party is so close to the Democrats that they adopt policies that are practically the same….
Next up, the courts will undoubtedly weigh in on this new law. Let’s hope they save the Republicans from themselves.