Taxation

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    PA Legislature to Gov Wolf: We’ll Craft Budget Without You

    without youOn Wednesday Pennsylvania Gov. Wolf got his wish to have an up or down vote on his latest high tax budget proposal and it went to down in flames (see PA Gov Wolf’s High Tax Budget Goes Down to Defeat – 9 Dems Against). So now both Republicans AND Democrats in the PA legislature (Senate and House) have agreed to hold the next round of budget talks without Wolf, because he’s not being an adult. It’s the ultimate humiliation when your own party won’t listen to you any more and begins to govern without you, but that’s the situation in the Keystone State. We’re still not out of the high Marcellus Shale severance tax woods yet, but cracks of sunshine are appearing that there will be no severance tax in this year’s budget…
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    Is PA Gov Wolf Targeting the Marcellus Industry for Extinction?

    Daniel Markind
    Daniel Markind

    Is Pennsylvania Gov. Tom Wolf actually *trying* to kill the Marcellus Shale industry? It’s not our question, but a serious question being asked by Dan Markind, a lawyer and partner with Weir & Partners in Philadelphia. In today’s guest post, Dan recounts Wolf’s actions during his first ten months in office and asks a serious question about what Wolf is trying to do to the Marcellus industry. Actions speak louder than words. [Incidentally, no one else seems to recall, but we do, that California billionaire and environmental activist Tom Steyer gave Wolf something like $14 million for his campaign (see CA Anti-Driller Tom Steyer Purchasing Tom Wolf PA Governorship). Perhaps Wolf is paying off his campaign debt to Steyer by targeting the Marcellus for extinction?]

    Dan also updates us on the situation with the Constitution Pipeline–delayed by New York’s Dept. of Environmental Conservation; the Obama Administration’s decision to oppose ending a ban on crude oil exports; and a huge oil find in Israel, or is it really in Syria?…
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    PA Gov Wolf’s High Tax Budget Goes Down to Defeat – 9 Dems Against

    muggingIn the end, it was PA Gov. Tom Wolf’s own Democrat Party House members that sunk his latest high tax budget proposal. Nine Dems voted against the Wolf budget, showing bipartisan support for defeating Wolf’s high taxes, including lack of support for a high severance tax. Every single Republican, even the RINOs, voted against Wolf’s unpopular budget proposal. Trying to spin his humiliating defeat as some sort of plus, Wolf said he was “encouraged” that “so many Democrats” actually voted yes for his budget. Talk about chutzpah. Rep. Daryl Metcalfe, R-Butler, has some big cojones–he equated Wolf with a thug trying to mug somebody, taking all of their money at gunpoint. Wow! It’s about time there was some frank talk about the bully Wolf has become in ten short months–and some push-back against it. Time for Republicans to pass a budget and get a few of those Dems to go along and override a Wolf veto. Time to govern without Wolf if he refuses to do his job…
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    The Tide has Turned Against PA Gov Wolf with Latest Tax Proposal

    tide has turnedOnce again PA Gov. Tom Wolf is proving himself to be a partisan hack, and certainly not up to the job the good people of Pennsylvania elected him to do. He’s a typical tax and spend liberal (voted the most liberal governor in America by the non-partisan InsideGov, see PA Gov Tom “Severance Tax” Wolf: America’s Most Liberal Governor). Yesterday Wolf unveiled his latest budget proposal. The budget is all interconnected, and a jumbled mess, but the part we’re interested in: He is still pushing for a severance tax. Instead of his original so-called “5%” severance tax on Marcellus Shale production, which according to Democrats at the Pennsylvania Budget Office would really be a 17.3% tax (see PA Official Admits Wolf Severance Tax Highest in Nation @ 17.3%), Wolf has dropped the rate from 5% to 3.5%. But here’s the kicker. Wolf is keeping the extra tax of 4.7 cents per thousand cubic feet AND he will keep the existing impact fee, which has been estimated to equate to a 3.5% to 7% severance tax, depending on the source. ALL of the new tax (presumably not the impact fee, but the new 3.5% + 4.7 cents) would go to education–as a payoff for electing Wolf…
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    Make or Break Week for PA Gov Wolf’s High Severance Tax

    make or breakThis week should tell us a lot about the future of a severance tax in Pennsylvania–at least the near-term (this year) future. PA Gov. Tom Wolf, a failed governor who’s only been in office for 10 months, is demanding a high severance tax on top of an already high impact fee (the equivalent of a severance tax) in order to pay back teachers’ unions for voting him into office. He’s playing a dangerous game of chicken–dangerous for education, dangerous for all of the agencies without money to operate, dangerous for every citizen in the Commonwealth. Today Wolf will float yet another budget calling for a high severance tax and it will get voted on tomorrow. Prospects for Wolf passing his budget, even though he’s been lobbying RINOs in the House and Senate (bribing them with political promises), don’t look good. In an act of supreme hubris, Wolf says if he loses this vote, Pennsylvania loses. We say it’s the opposite…
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    Wolf Asks “Good Republican Legislators” to Support Severance Tax

    Make Him an Offer He Can't RefusePA Gov. Tom Wolf has dropped all pretense of being a nice guy and has turned into a mafioso bully because he can’t get his own way. We understand. He made a back-room deal with teachers’ unions and they delivered him an election victory. He owes them and the only way he can pay them off is by taxing the Marcellus Shale industry into oblivion. Wolf’s latest tactic is to call the Republicans who won’t go along with his Marcellus-killing severance tax “the bad guys” and appeal to RINOs in the House and Senate–those like Rep. Gene DiGirolamo (from the Philly area)–those he calls “good Republican legislators”. Wolf plans to make the RINOs an offer they can’t refuse in order to support a severance tax. Will they bow to pressure from the don?…
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    PA Gov Wolf Declares Severance Tax War on Shale in Budget Veto

    vetoThe ideologically rigid, most-liberal governor in America (according to InsideGov), Pennsylvania Gov. Tom Wolf, yesterday vetoed a stopgap spending budget passed by the Republican-controlled House and Senate, further damaging the people he pretends to want to help–little children in schools. Falling back on the same old lies and political pandering rhetoric, Wolf said he was vetoing the bill because it “sells out the people of Pennsylvania to oil and gas companies and Harrisburg special interests.” It’s now open war on the Marcellus industry by the Wolf administration. In his veto letter, Wolf doesn’t mention that his own special interests–primarily teachers’ unions–are the real reason he’s holding out for an obscenely high severance tax on Marcellus Shale production. Sometimes politicians like Wolf have conveniently leaky memories. Wolf is perfectly happy with driving the state right over an economic cliff if he doesn’t get his way on a severance tax, no matter who (i.e., children) get hurt…
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    WV Newspaper Says State Should Avoid NGL Severance Tax Hike

    hopeJust last week MDN told you about the bone-headed proposal from a partisan group in West Virginia calling for a doubling or tripling of the severance tax on natural gas liquids–unless those NGLs stay in the state (see Partisan Group Wants to Double or Triple WV’s NGL Severance Tax). There’s at least one group of editors at a mainstream newspaper in the state who disagree. The editors at The Intelligencer/Wheeling News-Register point out the danger that such a tax will reduce drilling in the Mountain State, and rather than contribute more tax revenue to WV’s coffers, it will end up contributing less. Finally! Somebody who writes news who can grasp economics 101! Perhaps there is hope after all…
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    Partisan Group Wants to Double or Triple WV’s NGL Severance Tax

    tax increaseThe partisan (Democrat) West Virginia Center on Budget & Policy, which pretends to be nonpartisan and above the political fray but isn’t, has just published a so-called policy brief titled “A Win-Win Marcellus Shale Tax Incentive” (full copy below). The “brief” attempts to make the case for doubling or tripling the severance tax on natural gas liquids produced in WV (from 5% to 10% or 15%)–giving exemptions to the tax increase for those who keep the NGLs extracted in the state. The recommendation hopes to boost the attractiveness of petrochemical plants like the proposed Odebrecht cracker plant that would use ethane, the primary NGL extracted in WV, by making it more expensive to send WV’s ethane across the border, to say either Shell’s proposed cracker in PA or PTT Global’s proposed cracker in OH. The tone of the “report” is that WV has been raped and pillaged in the past–their precious coal stolen and carted away to other states–and WV can’t let that history repeat itself again. Better to shut down drilling rather than have any of it “exported” to other states. It is misguided and faulty thinking…
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    OH Legislators Will Miss Promised Oct 1 Frack Tax Deadline

    past dueLast week MDN told you that Ohio’s RINO legislators continue to work on raising the Utica Shale severance tax in the state “behind closed doors” (see Ohio Legislators Continue Dalliance with Kasich Severance Tax). Those same legislators had previously said that a “study committee” working on a compromise proposal would have that proposal done by October 1. They’re now saying they won’t meet that deadline. We suppose any deadline on raising taxes that slips is good–but the fact remains they’re still hard at work trying to raise taxes on an industry reeling from low prices and laying down rigs left and right. An update on the latest coming from the frack tax hacks…
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    PIOGA Sets Record Straight on Latest Wolf Attack re Severance Tax

    temper tantrumThe Pennsylvania Independent Oil & Gas Association (PIOGA) has been at the forefront in opposing an industry-killing severance tax proposed by new governor Tom Wolf (see PIOGA Leads the Charge to Defeat Wolf’s Severance Tax). We are now close to three months past the deadline for a new state budget–and Wolf continues to be obstinate. He offers a few crumbs and when Republicans don’t immediately cave on a massive, industry and jobs-killing severance tax, he jumps up and down like a spoiled three year-old saying he “got nothing” in return. What a putz. Here’s how the obsequious Pittsburgh Post-Gazette reports Wolf’s latest temper tantrum…
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    Ohio Legislators Continue Dalliance with Kasich Severance Tax

    behind closed doorsOnce again Ohio Republicans are starting to lose their cool and are considering a dalliance with a high Utica Shale severance tax proposed by RINO Gov. John Kasich (who’s running for president, but then nobody knows since he’s at 0% in the polls). Perhaps state Republicans think by giving Kasich what he wants in a high severance tax it will enhance his presidential prospects with conservatives? (NOT!) Whatever the reason, Ohio’s left-leaning PBS outlet at Kent State is reporting legislators are meeting “behind closed doors” with members of the oil and gas industry to beg and plead for an increase in the severance tax…
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    PA Dems Get Nervous that Republicans Won’t Cave on Severance Tax

    nervousPennsylvania Democrats are finally waking up and beginning to get nervous that state Republicans might actually not cave on a Marcellus-killing severance tax after all. How do we know? One of the Democrat public relations outlets–the Pittsburgh Post-Gazette–penned an “editorial” calling for a stopgap, short-term budget. PA’s Gov. Tom Wolf, who has been crowned the most liberal governor in America by the non-partisan website InsideGov (see PA Gov Tom “Severance Tax” Wolf: America’s Most Liberal Governor), obstinately refuses to let go of his plan to soak Marcellus drillers to give their hard-earned money away to teachers unions. Republicans, which hold majorities in both the PA House and Senate, aren’t caving. They refuse to enact an industry-killing severance tax. That’s a problem for the neophyte and frankly in-over-his-head Wolf…
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    PA “Independent” Fiscal Office Dem Tool in Severance Tax Debate

    we fight dirtyPennsylvania’s Democrats continue to fight dirty in the budget battle–in their losing effort to pile big taxes on a single industry, the Marcellus Shale industry. The latest in the dirty war they’re waging: the extremely partisan Democrat-controlled so-called Independent Fiscal Office (yes, a PA state government office funded by taxpayers) has issued a report to sycophantic media outlets (but not the general public via its website) to forecast a decrease in Marcellus Shale impact fee revenue for 2015…
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    Wolf Floats Trial Balloon of 3.2% Severance Tax via Proxies

    trial balloonA Pennsylvania Democrat in Republican clothing, Gene DiGirolamo (“Republican” House member from the Philadelphia area), along with a hard-left Democrat, Steve Stroman (director of Penn’s Woods Conservation Advocates), have penned a “bipartisan” column in the Harrisburg Patriot-News on how a “principled” and “reasonable” severance tax compromise will create education nirvana in Pennsylvania. The column is so shot full of lies we can’t even begin to count them. This is pure propaganda from two lefties who want to tax and spend PA into the ground once again, as it existed under Ed Rendell before Tom Corbett fixed it by cutting excessive and out-of-control education spending. Our pair of lefties say just a piddly little 3.2% severance tax will be all that’s required–even though until now nothing less than 5% (actually it turns out to be 17.3%, see PA Official Admits Wolf Severance Tax Highest in Nation @ 17.3%) is what these thieves have demanded. Their attitude is, “OK, you’ve made your point, NOW we’ll cave a little bit.” The proper response to DiGirolamo and Stroman, who appear to be Gov. Wolf’s proxies in floating this particular trial balloon, is this: STUFF IT…
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    PA Dem Legislators Make Severance Tax Dance Video – LOL

    NaeNaeDemocrats in Pennsylvania, in their desperation to sink a money well into Marcellus drillers to fund Big Education and teachers’ unions, have gotten even nuttier than they usually are. So nutty, we’re laughing out loud–at them. Representative Patty Kim (D-Dauphin), someone whose constituents voted for her to go to Harrisburg to get work done, has decided she would rather dance than do the hard work she was sent to Harrisburg to do. Kim’s eight year-old daughter told her mom about the Nae Nae after returning home from summer camp. It gave Kim her latest “brilliant” idea. What’s the Nae Nae? It’s a dance routine, apparently. So Kim, hoping to make a viral Youtube video, enlisted six other legislators, all of them hardened Democrats in favor of a Marcellus-killing severance tax, to dance the Nae Nae with her, on camera, making asses of themselves (watch it below). The message at the end of the video requests viewers to ask their legislators to support a Marcellus-killing severance tax. Kim used $1,000 of her own campaign funds, funds given to her by contributors who thought she was a serious candidate, to make this silly video. At one point the video also films children in a dance routine. What a shame to trick innocent children into supporting your own twisted political agenda. But that’s how Dems operate–brainwash ’em early and often…
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