State singing same old song with gas industry and taxes
It’s the same old song.
Our state government is trying to solve debt woes and a host budgetary headaches related to an operations budget that has risen 40 percent in a decade.
So one of the first proposals on the table is a severance tax of 6.5 percent on a Marcellus Shale natural gas industry already paying an impact fee tax.
To be clear, we understand the thinking to tax the industry based on actual production rather than number of wells.
We also support changes advocated by state Rep. Garth Everett, a Muncy Republican representing most of the region, to assure property owners leasing well space to companies do not get shortchanged on what they are owed.
But we can’t support a double tax on an industry that has been slumping and appears to finally be regaining its footing, especially when that industry’s success prompts so much other employment in related industries.
The better posture would be state support of pipeline infrastructure that would improve distribution of the product within Pennsylvania’s borders and beyond.
That would give the state’s gas industry companies a competitive advantage over neighboring states and generate employment and, ultimately, more revenue for the state.
All this, of course, is contingent on the natural gas industry being environmentally friendly with its operations.
As long as that is the case, this is an industry our state government should be touting, not punishing with double taxation.
We can’t help but be skeptical that the roots of this initiative are an impact fee now in place that benefits gas industry host communities – as it should – rather than the state’s general operations coffers.
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