Editorial “An impact fee for shale drillers” opines “…Why? Because the lion’s share of the revenue collected from the fee would go to the communities most affected by natural gas drilling… The money would not end up in the bottomless pit known as the state government General Fund – a concern expressed by Gov. Tom Corbett, who adamantly opposed the alternative, a statewide severance tax on Marcellus drillers.”
WATCHDOG: In other words, ‘Alms for the rich.’ Communities such as Williamsport are booming with heavy private investment and bulging tax rolls to serve the needs of the newly prosperous citizenry over the decades to come. Just as state revenues gained from corporations are for the benefit of the entire state, so should a severance tax. That is what other states do.
As for the so called “bottomless pit known as the state General Fund”, the severance tax money would mitigate the need for cut backs on subsidies for schools, medical care for the poor and elderly, and libraries. Nor would it be as necessary for local government to raise real estate taxes on the poor and middle class to compensate for loss of state aid. (Even tenants pay real estate tax as part of their monthly rent.)
Sure we should improve the efficiency of state expenditures. But not by allowing profits earned through the exploitation of Pennsylvania’s natural resources to go untaxed.
An acquintance told me the natural gas would be free to Pennsylvania and would be taxed when it goes elsewhere. And that is why we are not taxing the shale drillers in Pennsylania. Any truth to this???
EDITOR: No.