* The record of Pennsylvania state government — the Legislature, in particular — is riddled with examples of poor governance and blatant corruption. So Thursday’s decision by legislative leaders to essentially shut down the state House was just more affirmation that the welfare of the state and its citizens take a back seat to power politics and the money that drives it. Bottom line: more bad government from lousy leaders.
* We refer to House Speaker Mike Turzai and Majority Leader Dave Reed, both Republicans, who canceled voting sessions next week. That means a long-sought and hard-fought bipartisan measure to enact a tax on natural gas production — a so-called shale tax — will not come before the full House for a vote.
* Unfortunately, Turzai and Reed derailed the legislative train just a day after it left the station, a dastardly deed that brought the usually reserved nonpartisan Pennsylvania Budget and Policy Center into the debate. Noting widespread public support for a severance tax, the Policy Center wrote in a press release: “There is no greater sign of the growing strength of pro-shale tax sentiments in the House than this deeply troublesome decision in which Turzai and Reed again thwart not only the majority of members of the House but, also, the vast majority of Pennsylvanians who believe that natural gas drillers should pay their fair share.”
Doylestown Intelligencer: More bad government: Severance tax plan severed from a vote
By Matt Noonan
The record of Pennsylvania state government — the Legislature, in particular — is riddled with examples of poor governance and blatant corruption. So Thursday’s decision by legislative leaders to essentially shut down the state House was just more affirmation that the welfare of the state and its citizens take a back seat to power politics and the money that drives it. Bottom line: more bad government from lousy leaders.
We refer to House Speaker Mike Turzai and Majority Leader Dave Reed, both Republicans, who canceled voting sessions next week. That means a long-sought and hard-fought bipartisan measure to enact a tax on natural gas production — a so-called shale tax — will not come before the full House for a vote.
House Bill 1401 was passed by the House Finance Committee on Wednesday thanks largely to the efforts of state Rep. Gene DiGirolamo, R-18. The veteran Bensalem lawmaker was instrumental in forging a measure that received bipartisan support from the Finance Committee and appeared to have broad support in the House. Regardless, a shale tax should have been in place long ago as Pennsylvania remains the only gas-producing state that does not impose a tax on mining companies.
The state does collect impact fees that are distributed to local and county governments to cover the cost of wear and tear on infrastructure and whatever environmental cleanup is necessary. But those fees hardly compare to a tax on production, typically around 5 percent, that most states impose.
The impediment to a sensible severance tax, frankly, is the money that energy companies deposit in lawmakers’ campaign treasuries. If the “contributions” haven’t bought lawmakers’ outward support, they have encouraged tacit opposition to shale tax legislation.
Finally, many lawmakers appear ready to support a tax. That’s mainly due to the current $2.2 billion state budget deficit that legislative leaders — yes, them again — and the governor have been unable to close via some sort of reasoned agreement.
Whatever revenue House Bill 1401 produces, if passed, likely would go toward deficit reduction versus other special needs, though that issue isn’t fully resolved yet. Still, a warmer reception awaited the measure than previous attempts, including Gov. Wolf’s willingness to accommodate Republican demands for some relaxation of the regulatory process via permitting reform.
Unfortunately, Turzai and Reed derailed the legislative train just a day after it left the station, a dastardly deed that brought the usually reserved nonpartisan Pennsylvania Budget and Policy Center into the debate. Noting widespread public support for a severance tax, the Policy Center wrote in a press release: “There is no greater sign of the growing strength of pro-shale tax sentiments in the House than this deeply troublesome decision in which Turzai and Reed again thwart not only the majority of members of the House but, also, the vast majority of Pennsylvanians who believe that natural gas drillers should pay their fair share.”
And that’s the nut of the debate: Gas drillers are making a fortune on a state resource. They need to pay their fair share to the state.
Read the article here.