Samantha Melamed says PBPC estimates PA could be raising almost twice as much revenue from Marcellus Shale:
The natural gas industry extracted more than $6 billion worth of shale gas in Pennsylvania last year. The state’s cut — announced this week by the Public Utility Commission — was around $200 million, or 3.3 percent. And according to the Pennsylvania Budget and Policy Center, that’s a little more than half of what a West Virginia-type drilling tax would have raised. They figure a more aggressive tax could have brought in $387 million for 2011.
“There are real questions about whether Pennsylvania’s fee is enough to pay for the impacts of drilling on local communities,” said Sharon Ward, director of the center, in a statement. “Local communities have short- and long-term issues to address and should not be shortchanged.”
Maybe so, but Democrats shouldn’t get drawn into a debate over “impact” costs. The reason to try to raise twice as much revenue from Marcellus Shale is that we can. Frackers can’t get at Pennsylvania’s gas from Ohio or West Virginia. They can only get at it if they’re in Pennsylvania, and if they’re in Pennsylvania, they have to pay Pennsylvania’s tax rates on gas drilling. Mike Sturla said gas companies told him they’d still drill in PA if the tax was the highest in the nation. So why not have the highest natural gas tax in the nation?
The reason to raise twice as much money from fracking is that the state needs the money for useful public services and pensions, and the money’s got to come from somewhere. It would be better to raise as much money as we can get from fracking, to the point where we’re using the proceeds to lower taxes on sales and income.
Read Cate Long for more on how PA’s getting ripped off.
“So why not have the highest natural gas tax in the nation?”
This thinking, which is “Because we can do it- we should do it” is the same approach as the people who you’re arguing against
Huh? I’m arguing against the people who say we shouldn’t tax natural gas that much.
The state needs money for services. Taxes on wages will depress work ethic, and taxes on sales will depress sales. Those are the reasons to avoid taxing those things. But gas drillers are saying that the highest gas tax in the nation *won’t* depress gas drilling. So why not go all-in on the fracking tax first, and then see how much more we need and raise the rest from sales and payroll?
Suck them all the way in until they’ll pay anything to stay. If they’re totally invested, any tax is cheaper than leaving.
How foolish are you People? the price of shale is at an all time low- they will NOT still be drilling.. only tophole’n and move’n away. The nation is in a race to get these companies to drill in their areas… you can kill the golden goose if you so wish.
They’ve been over-drilling it looks like, but it won’t be that way forever. PA has a ton of gas to be drilled in the coming years, short-term market fluctuations notwithstanding.
People replying to drilling regulations should know something about it. Frackers are not operators but a subcontractor, all paying withholding taxes. How much government regulation do we need on all businesses? What business is next? Maybe we have to worry about our spending, not revenues. The real bomb shell, that the state does not want to let out, but those in the know can figure it out off of public information, how much is the state really taking in on royalties from state forest ground drilled on? Most of the public can’t handle the real truth that the state doesn’t want to let out? We live in a protected area both jobs and property values because of the gas industry. We should be thankful the federal government is too slow to open the Balken. Wake up America, government isn’t the answer. If you want a tax like California, move to California. Pennsylvania should attractive to business not unattractive. Plunder is easier than profit but not desirable in a responsible civilization.
They won’t leave PA if we impose taxes. They have too much invested. The pipelines, the infrastructure, all of it is here, and we’re becoming the largest producer of shale gas in the nation. They’re not going anywhere. The state deserves more compensation for allowing this industry to keep a hold on our economy and our state. Learn more about it at shalestuff.com