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Drilling taxes among lowest in nation

March 22, 2014

PITTSBURGH (AP) — Pennsylvania’s taxes on the natural gas drilling boom are among the lowest in the nation, according to a new report from a nonpartisan office of the state Legislature....

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(71)

Nobody

Mar-22-14 1:14 AM

"The Marcellus Shale Coalition has said "it would be irresponsible and ill-advised" to impose large new energy taxes on the industry."

Who would of thunk they would say that!

The truth is, they'd be here anyway because this is where the Gas is. They can't move the gas to Florida to lower their taxes.

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Nobody

Mar-22-14 1:14 AM

And maybe Sun Gazette, in your shilling for big oil to keep your presses running, the people of this Commonwealth deserve better compensation from big oil.

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Premier

Mar-22-14 5:29 AM

"the people of this Commonwealth deserve better compensation from big oil."

How would more "compensation" benefit us? Do you honestly think our taxes will be lowered if they take in an extra couple of billion a year? No it will be spent or should I say squandered. All that would happen is it would increase energy cost here in the state.

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CarlHiller

Mar-22-14 6:26 AM

No matter what the tax is on a corporation the consumer pays. So at some point since nearly 70% of all companies doing business in Pa, and 85% of gas companies, do not pay any corporate income tax, at some point there will be either a cutting of services or a rise in personal income taxes or sales taxes, or a combination. You can gather this info at the Pennsylvania Department of Revenue. Corporations of all types are not paying taxes whether state or federal. That is why there is deficit spending and borrowing. It is political suicide to raise personal income taxes or sales taxes in order to sufficiently cover government expenses without corporations paying taxes.

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Mike101054

Mar-22-14 6:27 AM

Why should one industry be singled out for a special tax? The gas industry is one of the few providing new jobs. While it is true we have lots of gas, it is not true the companies cannot leave. There are now many gas deposits around the country to go to where the taxes will be cheaper. Left winger Mirabito and his left wing friends want to tax them even more. I think we should have a special tax on landlords like Mirabito. Wonder if he and his lefty friends would like that? This is the best thing to happen in Pa for years. Let's not let the left wingers screw it up.

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CarlHiller

Mar-22-14 6:31 AM

As an aside, personally I am against any income taxes at all, no one should be required to pay a tax on their labor. Consumption taxes are the most equitable way to tax if needed, the problem is in normal times of economic growth, and a responsible money system where government issues the moneies rather than borrowing the monies from a private banking concern, there would be no need for taxing at all. Congress abdicated its responsibility to issue money to the private FED. That is where all the issues with the economy lie.

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eriklatranyi

Mar-22-14 6:57 AM

Liberals are like wolves with an insatiable appetite.

Liberals see some profit and immediately want to devour it, but the result is just more dog ship for the people.

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BillTriumph

Mar-22-14 7:19 AM

Where is the political will to move legislation to exploit the NG industry so that the taxpayers can reap the bounty of tax relief like we did when legalization of gambling and all those lottery receipts kicked in?

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lookout

Mar-22-14 7:23 AM

So why rape another industry and drive them away. Keep the wealth in our commonwealth by keeping a fair taxation but not to the point where the local and state governments get greedy. Everyone benefits from a prosperous job source!

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lookout

Mar-22-14 7:23 AM

So why rape another industry and drive them away. Keep the wealth in our commonwealth by keeping a fair taxation but not to the point where the local and state governments get greedy. Everyone benefits from a prosperous job source!

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ToTEXASfromPA

Mar-22-14 8:09 AM

"The Independent Fiscal Office agreed that it's difficult to compare state energy taxes."

++

States governments raise taxes in a variety of ways and they are different from state to state.

For instance in Texas, we pay no personal income tax like PA; however, our sales taxes are 8.25% on all goods (ie no exemptions for necessities like food and clothing) and our property taxes which are used to pay for schools and other utilities are very high.

Similarly, businesses and industries are taxed in different ways or have different exemptions to be attracted there.

At the end of the day, government should be run by responsible people that focus on providing basic services only; instead of trying to line their own pockets or their friends. The current system of allocating Act 13 monies seems to be to arbitrary and politically motivated.

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DaveFogelman

Mar-22-14 8:54 AM

What is quickly passed over in this article is not only is the corporate tax rate for PA higher than other gas producing states, PA's corporate tax rate of 9.99% is the highest in the nation. How can an additional tax on gas extraction, which would only go to the state's General Fund and no longer directly benefit townships where drilling is occurring, be beneficial for the state's economic climate? Hello NY - bye bye PA.

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SilverFeather

Mar-22-14 8:59 AM

erikthetranny: "Liberals are like wolves with an insatiable appetite." Yeah, that's how we got that GAS TAX, just another LIBERAL politician taxing gas 30 cents a gallon! Check yourself before you wreck yourself. This aritcle is total BS. There is NO GAS TAX as of right now. There is a fee for ruining the roads and only a person with leases coming out there ears would say NO to an actual gas withdrawal tax. We need it, the middle class are suffering, the wealthy are laughing and we need the gas to be taxed. The gas companies are NOT going to leave all of that gas here, they just won't. They're not going anywhere, tax the pants off of them, they've been skating for years now.

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eriklatranyi

Mar-22-14 9:09 AM

SilverFeather:

Democrats voted overwhelmingly for the gas tax hike.

But, as a liberal liar, you want to point the finger at the guy who signed the bipartisan compromise rather than see the real issue.

A perfect example of why no Republican should EVER compromise with the liberal rats....they turn on you immediately afterwards!

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eriklatranyi

Mar-22-14 9:10 AM

The people with leases and royalties are also paying higher taxes than in other states.

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Zippie

Mar-22-14 9:11 AM

Doesn't all the gas get pooled together and sold on the market?

Does the gas from PA burn cleaner and hotter because the gas industry makes a higher profit from it?

Once pooled, does the industry sell PA gas cheaper because they acquired it cheaper?

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PatriciaG

Mar-22-14 9:17 AM

Please research further before you believe that PA is not collecting enough taxes…..According to the following, PA has the second highest corporate income tax rate behind only Iowa.

Spending WISELY the money already collected and cutting expenses is the key…not more taxation!

There are several different ways the states get tax monies… In addition to regular income taxes, many states impose other taxes on corporations such as gross receipts taxes and franchise taxes. Some states also impose an alternative minimum tax. Some states impose special rates on financial institutions.

Source: State tax statutes, forms, and instructions; Tax Foundation.

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PatriciaG

Mar-22-14 9:43 AM

from the PA Dept. of Revenue website: Pennsylvania has a flat corporate income tax rate of 9.990% of gross income. The federal corporate income tax, by contrast, has a marginal bracketed corporate income tax.Pennsylvania's maximum marginal corporate income tax rate is the 1st highest in the United States, ranking directly below Iowa's 12.000%.

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rick424

Mar-22-14 9:45 AM

"The Marcellus Shale Coalition, an industry group, said the analysis is flawed"

Off course they would say that. Question for anyone out there. Has your taxes gone down since the industry came to town? Has things really improved for most of the average Joe around here?

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CarlHiller

Mar-22-14 10:16 AM

PatriciaG - Although PA corporate tax rate is high. The vast majority of corporations skirt the law using the "Delaware Loophole" allowing them to avoid paying Pennsylvania corporate net income taxes. Over 70% of multi-state corporations doing business in PA pay nothing in corporate net income taxes. It has been estimated that the PA loses $500 million annually using the current corporate net income tax accounting methodology. Corporations use hundreds of techniques to shift income from state to state to utilize the lowest rates possible. I am not talking the small business that may be incorporated, these are the big businesses like Andarko, Walmart, Heinz, etc. In Pennsylvania, $1.7 billion is lost from the corporate abuse of tax laws and havens. All this can be found at Pennsylvania Department of Revenue.

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Scott36

Mar-22-14 10:45 AM

The current system of allocating Act 13 monies seems to be to arbitrary and politically motivated.-ToTEXASfromPA

Amen!! If I understand some of the SG's recent articles, some of it is going to private development companies. Politically motivated? Yup. Bordering on corrupt? probably. JMO-Scott

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Scott36

Mar-22-14 10:53 AM

. They're not going anywhere, tax the pants off of them, they've been skating for years now.-SilverFeather

I agree. For those whom claim that gas co/corp. will leave the state in order to avoid taxes, that would be like cutting off your nose to spite your face. Question: If a well pad is slated to make a company 15 million over its life span(have no idea of #'s on this subject), BUT with taxes added, it will only make them say 14-1/2 million, or for that matter only 12 mil.--They are going to pass that up?? Me thinks not.-Scott

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Scott36

Mar-22-14 10:56 AM

A perfect example of why no Republican should EVER compromise with the liberal rats....they turn on you immediately afterwards!-eriklatranyi

Slow deep breaths!! Liberals are not going to be the downfall of the entire universe. Slow deep breaths--Scott

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Scott36

Mar-22-14 11:03 AM

In Pennsylvania, $1.7 billion is lost from the corporate abuse of tax laws and havens. All this can be found at Pennsylvania Department of Revenue.-CarlHiller

Thank You. It is completely incredible. They want all of what Pa. has to offer, yet feel absolutely justified in not paying into/supporting it. What is that Right wing phrase? Makers vs. Takers.-Scott

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BornHere

Mar-22-14 11:45 AM

Close the "Loopholes" keep the money in Pa. where it belongs.

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