Taxation

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    Wolf Can’t Get Current Budget Done, Vows Severance Tax Next Year

    Will Pennsylvania’s governor, Tom Wolf–the most liberal governor in America according to the nonpartisan website InsideGov–finally agree to a budget framework and budget to end a nearly six month delay he has caused? He promised to try and get the budget done by Thanksgiving–but you know all about politicians and promises. That promise is now out the door. The latest news we’ve been able to locate says Wolf’s plan to hike the sales tax in order to give a break on property taxes is now dead. The one thing that every news account we read says is this: Wolf is promising to resurrect the issue of a Marcellus Shale severance next year and every year thereafter of what we predict will be a very short tenure as PA’s governor. Wolf is fixated on raiding drillers and landowners in order to transfer their hard-earned money to those who don’t earn money–teachers unions…
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    WV Politicians: Raise Severance Tax, Lower Property Tax

    What is it about politicians needing to get their grubby hands on YOUR money? A group of West Virginia state politicians–delegates and one state senator, both Democrats and Republicans–held a town hall meeting at West Virginia Northern Community College last Thursday in which they pontificated that the severance tax in WV is too low, and property taxes for Marcellus/Utica Shale landowners are too high. Below is a summary of the back and forth at the meeting. The somewhat ominous (from our perspective) talk at the meeting is that in this down market politicians want to further kill the drilling industry (the one bright spot) in their state by taxing it higher…
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    PA Lib Dems Don’t Like Paying High Education Tax Themselves

    Pennsylvania Democrats are unhappy with their governor. They were all jazzed and giddy at the thought of taxing Republicans (i.e. drilling companies) to raise mountains of money for Big Education (i.e. Democrat voters). In the end, Gov. Tom Wolf had to settle for taxing other Democrats because, as Senate Majority Leader Jake Corman says, the drilling industry is “on its back” and more taxes would shut it down. Lack of a Marcellus Shale tax makes PA Dems grumpy–because they themselves (and their voters) will now pay for Wolf’s rash promise to Big Education. Hey, how does that shoe feel when it’s on your own foot, Lib Dems?…
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    PA LibDems Turn On/Attack Wolf Over No Severance Tax Budget

    Must be Pennsylvania’s liberal Democrats, like those in the Harrisburg Patriot-News news room, thought Tom Wolf was the Second Coming of Barack Hussein Obama. They actually thought that Wolf could jam huge tax increases, including a Marcellus Shale severance tax, down the throats of PA Republicans in the state legislature. Somehow (thank the Good Lord) Republicans grew a spine and resisted the withering pressure and harassment of Dems and their media organs, including the Patriot-News. So we thought is noteworthy (and funny) when the editorial board at the Patriot-News essentially turned on one of their own, Tom Wolf, and threw him and his budget deal with Republicans under the bus…
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    Wolf Says You’ll Love the Budget Deal; Repubs Say, What Deal?

    Yet another mass delusion campaign has begun to convince Pennsylvanians that what just happened didn’t happen. And what just happened? Newly-elected neophyte Gov. Tom Wolf didn’t get anything important he wanted in the budget deal that’s quickly taking form–except for getting the second highest sales tax rate in the country. That he got, and he’s trying to spin that as a big positive. What is Wolf, and a sycophantic, servile mainstream media, saying? “He hung tough. He didn’t get everything, but by gaw he got a lot of it and it’s all good for the state. Yeah he didn’t get a Marcellus severance tax, but pay no attention to the man behind the curtain! Wolf got all this other great stuff for the teachers’ unions to pay them back for supporting him and everybody loves Wolf. You’re gonna love it–just you wait and see.” That about sums up the tone and style of “reporting” on the deal. Meanwhile, some rather honest Republicans from the Altoona area are saying, (1) the budget deal is most certainly not done yet, (2) schools are a never-ending sinkhole for money–they want more money in good times and bad, and (3) if the state had implemented a severance tax, it would have finished off the Marcellus industry where drilling is now at a minimum even without the extra tax. Wow, what a breath of fresh air to hear politicians who tell the truth…
    Read More “Wolf Says You’ll Love the Budget Deal; Repubs Say, What Deal?”

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    Huge Victory for PA Republicans – NO Severance Tax in Budget Deal!

    celebrateIt appears the fat lady is getting ready to sing with respect to no severance tax in Pennsylvania–at least for this year. The Republicans have won–kudos to them for hanging tough against the unreasonable Marcellus severance tax proposed by a neophyte governor attempting to pay off a political debt to teachers’ unions. There will be no new severance tax this year. Wolf has found another way to pay off the teachers–he’s going to siphon slot machine money for a big boost in education funding. The teachers’ unions don’t care–money is green and spends the same whether it comes from shale or slots. While a final deal is not yet done (let’s not count our chickens just yet), it does appear the outline of a budget deal, now more than five months late, is in place and moving toward passage in the next few weeks. Here’s the details…
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    PA Gov. Wolf Lectures Dem Reporter: Yes I Can Govern, I Can I Can!

    Several weeks ago MDN highlighted a story that the stubborn, obstinate, in-over-his-head Pennsylvania Gov. Tom Wolf can’t govern. That was the title of an article running in Philadelphia Magazine: “No, Tom Wolf Can’t Govern Pennsylvania” (see our story PA Budget/Severance Tax Talks Resume Today – Without Gov. Wolf). Wolf refuses to compromise on a nosebleed shale severance tax, which has held up the state budget since the end of June. The man can’t compromise, and frankly, he can’t govern either. The Philly Magazine article had it right. Like a petulant child, first a Wolf spokesman and then Wolf himself phoned up that reporter to tell him to get his Democrat head screwed on straight and to quit telling the truth…
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    Marshall County Commissioner Still Opposes $615M Electric Plant

    say what you meanIn August 2014 the Marshall County, WV board of commissioners (a 3-person board) voted to approve a plan to build a Marcellus Shale-powered electric plant in the county (see Marshall County Votes to Accept Gas-Powered Electric Plant). The vote was a bit complicated. In a nutshell, Moundsville Power, a company owned by developers from Buffalo, NY, proposed a deal to the county. They want to build a 549-megawatt plant costing $615 million. But if Moundsville owns the plant, it’s subjected to high property taxes. Moundsville proposed selling the plant to the county but running it for them. In essence the county will own the plant on paper. Because it’s county owned, no property taxes! However, Moundsville would make rental payments to the county–or payments in lieu of taxes (PILOT). The payments would not be as much as if it were taxed–about $13 million less over 30 years. But the county still gets $31 million over those 30 years–and $31M is a whole lot better than $0. Moundsville would not have built the plant at all if not for the PILOT arrangement. One of the three commissioners, Bob Miller, voted against the plan. Now he’s trying to convince the state legislature to overturn the PILOT plan, although he says he still wants the deal with Moundsville to go forward…
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    OH Pipeline Projects in 2016: $8B of Investment, $360M in Taxes!

    tax revenueIn a somewhat related story posted today, MDN tackles the thorny issue of taxing pipelines in Pennsylvania. As serendipity would have it, last week Energy in Depth posted an excellent article on the financial impact pipelines are having in Ohio. Would you believe it if we told you that not only will an astounding $8 billion be spent to build new pipelines in the Buckeye State in 2016, but also an estimated $360 million in ad valorem property taxes (taxes on pipelines) will roll in to local municipal coffers. Next year. And every year thereafter! Here’s the numbers broken down by who is doing the spending and paying the taxes, and which pipelines will generate the most economic activity in Ohio next year…
    Read More “OH Pipeline Projects in 2016: $8B of Investment, $360M in Taxes!”

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    Is it Time to Tax Big Pipelines in PA?

    is it time yetAn Associated Press (AP) story appearing in multiple newspapers and in online outlets has returned to the meme of how unfair it is that pipelines in Pennsylvania are not taxed, as they are in other states like New York, Ohio and West Virginia. Perhaps they have a point? No, MDN isn’t going “soft”! We’ve long made the argument that a permanent structure in the ground should benefit landowners beyond a one-time, up-front payment (see the suggestion by Bryant LaTourette made at the Constitution Pipeline scoping hearing in April 2014: Vicariously Attend FERC Scoping Hearing on Constitution Pipeline). The counter to landowners receiving ongoing royalties for pipelines is the argument of electric power lines. They run everywhere over people’s property. You can’t build a structure under or near such lines once they are in place. Yes, they can be taken down/removed (i.e. not “permanent”), but when was the last time that happened? Landowners are not given an ongoing royalty for the electricity flowing through power lines that criss cross their land. Why would you grant an ongoing payment/royalty for a pipeline in the ground if you don’t for a power line above the ground? You see this is a thorny, complex issue. Although individual landowners in states like New York don’t receive an ongoing royalty for pipelines, the pipelines themselves are considered property and pipeline companies are taxed for having them in the ground, giving a community-wide benefit to all residents in a town or village. We’ve remarked before that the property taxes where we live (in NY) have gone DOWN because of a local pipeline. When’s the last time you heard about taxes going down in New York State?! In Pennsylvania, pipelines are NOT taxed, and therefore taxpayers in those communities don’t benefit. That’s the bone of contention…
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    OH Informal Working Group Report: No High Severance Tax for Now

    no taxMDN told you back in April that OH Gov. John Kasich’s insistence that the state budget include a higher severance tax would not happen as part of the 2015 budget (see Celebrate! Ohio Severance Tax Increase Dead in 2015). We also told you about an informal “working group” of OH Senate and House members, called 2020 Tax Policy Study Commission, who are studying the possibility of a new severance tax sooner rather than later (see Ohio Legislators Continue Dalliance with Kasich Severance Tax). That informal group released their formal report last Thursday (full copy below). The members of the group recommend NO TAX AT THIS TIME and further study of the severance tax issue. Specifically, they said with the industry stressed the way it currently is now, you risk killing it if you slap on a high tax. Finally! Some common sense from Republicans in OH. Of course that didn’t sit well with liberal Republican Gov. Kasich who wants to transfer the wealth from one particular group of companies to a different group who haven’t earned it. Kasich sounds more like the commie-lib Bernie Sanders than he does a Reagan Republican, which is what he was elected as back in the day when he joined Congress during the Reagan revolution (we were there, we remember)…
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    Biggest Companies in Marcellus Warn Wolf: No New Severance Tax

    don't you dareLast week 17 top Marcellus Shale-related executives–including those from CONSOL Energy, Chevron, Huntley & Huntley, MarkWest Energy, Williams and Columbia Pipeline Group–sent a letter to the Pennsylvania legislature and to PA Gov. Tom Wolf. The letter point blank said don’t slap a new/high severance tax on Marcellus Shale in addition to the already-high tax (called an impact fee). We couldn’t find a copy of the letter to share with you. However, we do have reaction from America’s most liberal governor, Tom Wolf, whose office responded with the “same tired argument” always trotted out by Wolf: he still wants to tax shale to give the money away to teachers’ unions in return for electing him to office. We don’t know how many times we have to say this: these are not empty threats by the industry. The industry is telling Wolf exactly what will happen if he institutes the tax–they’ll leave town…
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    Republicans/Dems Make Progress on PA Budget Without Taxaholic Wolf

    Taxaholic“No, really, I don’t have a drinking problem,” says the alcoholic who believes just one more drink won’t hurt. Such is the power of denial. That’s the analogy that went through our heads when we read this headline: “Wolf Says Legislators In Denial.” Wolf, the taxaholoic, is the one who is in denial. He’s not listening–to Republicans or to people in his own Democrat Party. Pennsylvanians don’t want his high tax “fix” of the budget. But Wolf is, choose your adjective: obstinate…obtuse…clueless…desperate. That last one is the most likely–desperate to pay back the teachers’ unions that elected him. He can’t afford to not boost taxes–on everyone and everything (especially the Marcellus Shale)–in order to fork big money over to Big Education. Meanwhile, Republicans and Democrats together are working on a bi-partisan budget that they intend to pass without Wolf–with a veto-proof majority. Wolf is toast. He can’t govern, and he’s proved it. Time to govern around him…
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    Scranton Newspaper: PA/OH/WV Should Cooperate on High NatGas Tax

    it's not fairWe wonder, do the liberal editors of the Democrat propaganda machine known as the Scranton Times-Tribune consider it “fair” to close down legitimate businesses that provide jobs and tax revenue to the state by targeting them with even higher taxes, forcing them out of business because they no longer turn a profit? Is “profit” a bad word around the news room of the Times-Tribune? Is the word “capitalism” banned from so-called reporters’ lips at the Times-Tribune? Those are the kinds of thoughts that roll around our brain box when we read yet another sycophantic “we need to tax the Marcellus industry more than we do already” editorial from the brainiacs at the Times-Tribune
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    Shhh…PA Budget Talks Begin Again “Quietly” — Without Gov. Wolf

    ShhhShhh. We have to whisper for this bit of news. Pennsylvania state budget talks began yesterday–“quietly” according to mainstream (Democrat) media. Staffers from no less than four House and Senate caucuses met yesterday, and will continue their meetings today and tomorrow, to see if they can hammer out a compromise budget. The dirty little secret is that no Gov. Wolf staffers are invited. Republicans and Democrats will work out the budget without Wolf and then let Wolf pretend it was all his idea in the first place. That’s how mainstream media covers for one of their own who’s gone off the rails as much as Wolf has. WORD IS (shhh! keep your voice down)…(oops, sorry)…word is that the budget negotiators will first agree how much extra spending they can get away with–put a number to it. After that they’ll figure out how they will raise insane amounts of new revenue to pay for it all. Yes, a potential severance tax is (unfortunately) still alive and kicking. We hope and trust Republicans will hold true and refuse any new taxes on the Marcellus Shale industry…
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    PA Budget/Severance Tax Talks Resume Today – Without Gov. Wolf

    without youWow. Pennsylvania Gov. Tom Wolf is as stubborn about wanting to raise PA taxes as a jackass–his party’s mascot. Wolf’s latest proposed budget was voted down last week–with nine Democrats in the House voting against it (see PA Gov Wolf’s High Tax Budget Goes Down to Defeat – 9 Dems Against). Wolf’s proposed tax grab was described by Rep. Daryl Metcalfe, R-Butler, as a thug trying to mug somebody, taking all of their money at gunpoint. The vote was a total humiliation of the in-over-his-head Wolf. Even fawning liberals are now turning on Wolf–describing him as stubborn (their words, not ours). Has the recent vote and criticism made Wolf more likely to now compromise with Republicans to craft a budget that doesn’t hit middle income workers quite so hard? Nope. Even though negotiators will be back at the table today to talk about the budget, yesterday Wolf went on a radio program to say he’s not “caving” on his insistence that high taxes be part of the budget. He’s gone completely bonkers–off his rocker. Perhaps they need to consider a straight jacket?…
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