Taxation

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    Anti-Drilling PA Gov Candidate Allyson Schwartz Spits and Sputters

    Queen BeeIn a hilarious set of meetings with reporters in Harrisburg, PA, Democrat primary candidate for governor Allyson Schwartz had a spitting and sputtering fest. We truly wish we were there. She repeatedly attempted to lob verbal molotov cocktails at both Republican Gov. Tom Corbett (running for re-election) and at her chief primary rival and fellow anti-driller Tom Wolf. But the verbal bombs she lobbed just wouldn’t go off–and one of them exploded in her own face. At times pleading and at other times scolding, Schwartz essentially begged reporters to criticize Wolf and Corbett on her behalf.

    One of those reporters had had enough and asked her: since Tom Corbett has released 10 years of tax returns, why don’t you? Schwartz went nearly apoplectic. How DARE a reporter challenge the Queen Bee!? Her response was, essentially, “good for thee but not for me.” Which is the way anti-drillers like Schwartz always operate, with double standards…
    Read More “Anti-Drilling PA Gov Candidate Allyson Schwartz Spits and Sputters”

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    Ohio Business Roundtable Sells Out – Endorses High Severance Tax

    With Friends Like TheseUnbelievably, the Ohio Business Roundtable, comprised of CEOs of big businesses in Ohio, has endorsed a high severance tax on Utica Shale drilling. The OBR is using (abusing) an Ernst & Young “analysis” to say, in essence, go ahead and screw drillers and landowners–the drillers will stick around because they get screwed worse elsewhere. We’re somewhat befuddled at how the OBR can say it’s OK to steal the wealth from a specific industry and transfer to others who didn’t earn it. But we’re simple folks in our reasoning power. All’s we can say is that, with friends like these…

    Below is the statement from the OBR and a copy of the “analysis” done by E&Y that blesses a high severance tax and makes it OK for Ohio’s RINOs to force it through.
    Read More “Ohio Business Roundtable Sells Out – Endorses High Severance Tax”

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    OH County Commissioner Says ‘No Thanks’ to Severance Tax Increase

    A lone voice crying in the wilderness! Amid all of the calls for more socialism–redistributing the hard-earned money from landowners and drilling companies to people who didn’t earn it via a higher severance tax–a Washington County, OH commissioner says “No!” He says raising the severance tax is a fundamentally bad idea and he does not endorse the Republicans’ dalliance with the idea.

    And so we bring you a letter to the editor reprinted in the Parkersburg (WV) News and Sentinel from Washington County, OH commissioner Ron Feathers, a man we salute!…
    Read More “OH County Commissioner Says ‘No Thanks’ to Severance Tax Increase”

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    PA RINO Claims 50 Repubicans Ready to Vote Yes on Severance Tax

    If you believe a left-leaning AP reporter and a few RINO sources, Republicans just can’t wait to vote for higher taxes in PA. According to the Democrat who pretends to be a Republican, Eugene DiGirolamo (R-Bucks), there’s “50 Republicans” in the state legislature who would vote for a nosebleed-high severance tax on Marcellus Shale drilling and do so right the heck now.

    Really? How about some names Gene? Besides yourself and two or three other southeastern PA RINOs. Frankly, we think it’s smoke and mirrors to prop up your own pathetic campaign. And by the way–when will the Democrats in southeast PA boot people like DiGirolamo and replace him with a real Democrat, and not a pretender?…
    Read More “PA RINO Claims 50 Repubicans Ready to Vote Yes on Severance Tax”

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    Pressure Rises for Fair Tax on News Industry (Absurdity Illustrated)

    Since no one else but Gov. Corbett is sticking up for the existing impact fee on Marcellus drilling in PA that raises millions of dollars (and not doing all that great a job of it), on Monday MDN took a stab at making a case for the fundamental unfairness of targeting a specific industry or group of people for high taxes by justifying such an action as being “for the children” (see PA Dem Candidates’ Siren Song: Severance Tax “for the Children”). We told you that Democrats and their sycophantic supporters in the media would turn up the volume on a call for high severance taxes on the natural gas industry. We didn’t know just how quickly our words would come true!

    Today, after having met with and getting stoked by extreme liberal Allyson Schwartz (who is running for governor), the liberal Democrat editorial propagandists at the Scranton Times-Tribune dedicated their precious editorial space to a call for high severance taxes–and to bludgeon Republicans into supporting those high taxes. So we thought we would take the opportunity to tweak their editorial and in every instance of “severance tax” and “natural gas industry” replace those words with “news tax” and “news industry.” We wonder if the Times-Tribune editors would be in favor of this tax if it specifically targeted–or included–their operation and the operations of their liberal brethren? And what if the severance tax bill also included a new, extra 5% tax on the salaries of PA legislators. Would it pass then? You get the idea. Targeting a specific industry or group of people, no matter how “noble” the cause in using the money raised, is an obscene governmental abuse. It is theft. Here is our attempt to illustrate the absurd by using absurdity and turning their argument right back on them…
    Read More “Pressure Rises for Fair Tax on News Industry (Absurdity Illustrated)”

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    PA Dem Candidates’ Siren Song: Severance Tax “for the Children”

    not for the childrenOnce upon a time there was a man who worked really really hard. He was the type to arrive at work early, stay late, and go the extra mile. He paid (as we all do) nearly half of the money he earned in taxes–federal income tax, social security tax, Medicare tax, disability tax, property tax, school tax, state income tax, sales tax on everything he purchased, and fees on just about everything his hands ever touched. It adds up to about 50% of the man’s income (as it does for every single person reading this), whisked away and given to other people. However, because the man made a pretty good salary, the man’s neighbor had a brilliant idea: Each day when the man arrived home the neighbor was waiting, with gun in hand. He would point the gun at the man’s head and demand the man give him “just 5%” of what the man earned that day. It was so easy, the neighbor did this every day–and he targeted other nearby suckers, er hard-working people too–collecting 5% from them.

    Getting shaken down for 5% (on top of 50%) isn’t all that bad, is it? Sure it belongs to the people who worked so hard to earn it. Sure the people who earned it played by the rules, were super careful and considerate of those around them–upstanding members of the community. But the money is going to a good cause–the neighbor’s pocket! (Did we mention the neighbor with the gun doesn’t work nor earn a dime on his own?) Of course, in time, the neighbor with the gun got more greedy and 5% eventually turned into 10%, but hey, the people earning the money still got to keep 40%. I mean, good golly, 40% out of 100% ain’t all that bad, is it?…
    Read More “PA Dem Candidates’ Siren Song: Severance Tax “for the Children””

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    OH Severance Tax Blues – Kasich Says the Tax Trains’ a Comin’

    With apologies to the memory of the late, great Johnny Cash, to be sung to the tune of Folsom Prison Blues

    I hear the severance tax train a comin’
    It’s rolling round the legislative bend
    And I ain’t seen a better vote-buying scheme since, I don’t know when
    I’m stuck in Tea Party prison, and time keeps draggin’ on
    But that severance tax train keeps a rollin’, on down to a legislative vote.

    RINO Gov. John “foreigner hunter” Kasich is so excited, he may pee his pants. After a year of debating stupid Tea Party Republicans, his administration is “really close” to reaching an agreement with those in his own party to start soaking the Utica Shale drilling industry in his state. Really close. Really. But, you’ll have to wait until next month to find out just how much the industry will get soaked. They want to announce it and slam bam vote on it before anyone can raise the alarm. So deliberative. So open and transparent. What paragons of authority and leadership to emulate. What jerks.

    Here’s the story of a RINO governor and Republicans who apparently are willing to cave on their principles…
    Read More “OH Severance Tax Blues – Kasich Says the Tax Trains’ a Comin’”

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    2 Spineless PA RINOs Join Call for High Marcellus Severance Tax

    Several mainstream media outlets are trumpeting that “Republicans join the call for tax on Marcellus drillers.” Of course you have to read the fine print of the story to learn the so-called Republicans, which are really Republicans-In-Name-Only (RINOs), are really just two Republicans from the Philadelphia area where there is no drilling. They both want to stick their fingers into the pockets of landowners and drillers so they have funny money to throw around and buy votes with. Yes, we’re talking to you Gene DiGirolamo (Bucks County) and Tom Murt (Montgomery/Philadelphia counties). Shame on both of you.

    The real story is this: Two spineless RINO sellouts from the Philly area “join the call” for obscene taxes on the drilling industry. There is no mass movement among Republicans in Pennsylvania to kill off the drilling industry with high severance taxes being advocated by just about every Democrat legislator and Democrat candidate in the state. We sure hope the people of PA have wised up to the Dem drivel about taxing one industry (shale drilling) to give the Dems (and RINOs) boatloads of money to squander on pet projects–the chief pet project being to put money into the pockets of people who will vote for them…
    Read More “2 Spineless PA RINOs Join Call for High Marcellus Severance Tax”

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    2013 PA Impact Fee Sets Record: $224.5M, Grand Total Now $630M

    On Friday, PA Gov. Tom Corbett announced the Act 13 impact fee for 2013 will deliver the biggest haul yet–$224.5 million, which is up 11% from the monies collected under the impact fee for 2012. The official tallies are not yet released by the state Public Utility Commission (PUC), the agency charged with collecting the fees. However, the bills have gone out and drillers have until April 15 to pay the tax man.

    There may be a few quibbles about how the numbers were calculated, but overall, the PUC knows about how much it will receive and so Gov. Corbett, feeling pressured by the tax-and-spend Democrat candidates running for his job (cough *Tom Wolf* cough), wanted to release the good news now…
    Read More “2013 PA Impact Fee Sets Record: $224.5M, Grand Total Now $630M”

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    York County Park Getting $150K Upgrade Courtesy Marcellus $

    Even though there is no Marcellus Shale drilling in York County, PA, residents of the county will get $150,000 of improvements to a county park courtesy of Marcellus Shale drilling. MDN sees at least two or three of these kinds of stories–every week. We ignore most of them, but every now and again we bring you one of them to remind you of what the state is about to lose thanks to the “selfish seven” townships that sued the state to gut the Act 13 Marcellus drilling law–a law that provides for an impact fee that raises over $200 million per year that is distributed throughout the state–some of it in places like York County.

    Here’s the story of the $150,000 upgrade coming to a York County park courtesy the drillers and landowners out of whose pockets the money comes…
    Read More “York County Park Getting $150K Upgrade Courtesy Marcellus $”

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    Dangerous Economic Road Ahead for PA if Shale Economy is Topedoed

    In a letter to the editor published (amazingly) in the Pittsburgh Post-Gazette, Consumer Energy Alliance Mid-Atlantic executive director Mike Butler points out, in just a few paragraphs, the grave danger now hovering over Pennsylvania because of the PA Supreme Court’s poor decision to side with seven selfish towns to overturn important and large portions of the Act 13 law, and in danger from PA Democrats who want to stop all future Marcellus drilling in the state with an ongoing moratorium.

    Pennsylvania is at a crossroads and if her citizens choose poorly in the next election, they risk plunging the state into an economic disaster, as eloquently pointed out by Mr. Butler:
    Read More “Dangerous Economic Road Ahead for PA if Shale Economy is Topedoed”

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    PA Partisan Study Finds PA Needs to Soak Drillers with New Taxes

    The partisan Pennsylvania Independent Fiscal Office (IFO) last week released a so-called study on oil and gas taxes and concluded (surprise!) PA doesn’t pay enough in taxes (see PA Shale Industry Demonized for “Lack” of Severance Tax). The group compared apples with oranges and did it’s “best” to try and make a “fair” comparison and of course concluded PA drillers need to be drilled themselves–you know, to spread the wealth around in good socialist fashion. A full copy of the “study” is embedded below.

    It seems the IFO and PA Democrats are a bit thin-skinned when sources like MDN poke holes in their precious studies and dare to call them what they are: partisan hucksterism. And so news outlets like the Pittsburgh Post-Gazette rush in to try and prop them up with “look at how fair and balanced this study really is” kinds of articles, like this one:
    Read More “PA Partisan Study Finds PA Needs to Soak Drillers with New Taxes”

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    PA Dem Floats 5% Marcellus Severance Tax “For the Children”

    Pennsylvania Democrats continue their push for economic suicide. Borrowing from their 50 year-old playbook, the latest push is to impose a 5% severance tax on Marcellus Shale drilling in the state–which would effectively kill all drilling–and use the money (please don’t laugh)…”for the children.” Yes folks, PA’s schools suck big-time, and the only thing that can save them now is to extract some money out of the pockets of those nasty, filthy (and rich) drillers so teachers can educate young crumb crunchers to the superiority of socialism and taking money from one group (those who work) to redistribute to another (those who don’t work). What better way than to sink a pipeline right into the piles of money that come from drilling? What dunces.

    State Sen. Vincent Hughes, dunderhead Democrat from the Philadelphia area, said he will introduce legislation to impose a 5% Marcellus Shale severance tax that will be DOA, so he and other Dems can use it as a politically divisive campaign issue come November. Such caring (and intelligent) folks those PA Democrats. Just a teeny, tiny problem Vinny–your party has voted to stop all Marcellus drilling (see PA Democrat Party Votes to End Marcellus Shale Drilling Statewide). How will you tax something that doesn’t happen anymore? Oops…
    Read More “PA Dem Floats 5% Marcellus Severance Tax “For the Children””

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    Ohio Republicans About to Go Goose Hunting with Severance Tax?

    goose with golden eggIt seems MDN is not alone in encouraging the weak-kneed Republican politicians in Ohio to not screw up the economic miracle happening in their state by imposing an overzealous severance tax on Utica Shale drilling.

    The editorial writers at the Wheeling News-Register think Gov. John Kasich and the House Republicans should tread lightly and make double-dog sure whatever new taxes they vote for, they don’t kill the goose laying the golden eggs in Ohio…
    Read More “Ohio Republicans About to Go Goose Hunting with Severance Tax?”

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    Best Way to Kill Drilling in PA/OH/WV: “Uniform” Severance Tax

    A few weeks ago MDN said the plan floated by lefties and libs to create a so-called uniform severance tax across PA, OH and WV is one of the dumbest things we’ve heard in a long time (see Stupid Idea of the Year: Create Uniform Severance Tax in PA-OH-WV). The plan as proposed means all three states hold hands and jump off the economic cliff together. Apparently it’s more fun to die together (economically) than alone.

    MDN is not the only voice to point out the lunacy of this plan. The head of the PA Chamber of Business and Industry also says the proposed mega-tax is nuts. As Gene Barr highlights in the following letter to the editor, it’s apparent the people proposing such a plan–including the Pennsylvania Budget and Policy Center–are ignorant of how taxes in PA and other places actually work. You would think an organization with a name that includes the word “budget” would employ at least one economist or accountant. Apparently they don’t. They are economic illiterates who don’t realize what they are proposing is anything but fair–especially to Pennsylvanians…
    Read More “Best Way to Kill Drilling in PA/OH/WV: “Uniform” Severance Tax”

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    WV Roads in Need of Repair – Fracking to Blame?

    There are a number of roadways in Marshall County and other WV counties with active Marcellus and Utica drilling in need of repair. There is no doubt frequent truck traffic related to the drilling industry is partially at fault. However, truck traffic coupled with a brutally cold winter, seems to have made it worse. Not that roads in many WV communities were pristine to begin with! Just ask any driller operating in WV–the roads in WV suck. There’s just no nice way of saying it. They were not good before drilling, so drilling is not totally to blame.

    Still, drilling truck traffic has made it worse. So the industry should pay for repairs, right? Well…they already do. It’s called a 5% severance tax paid by drillers on everything they produce. The drillers are certainly paying it. If the state is not sharing that money with local counties for much-needed road repairs–that’s not the drillers’ fault…
    Read More “WV Roads in Need of Repair – Fracking to Blame?”