Momentum is building to enact a natural gas severance tax in Pennsylvania. But don't take it from us.
The Triadvocate has an analysis of the debate that concludes an extraction tax is "almost a fait accompli."
The debate over raising the minimum wage can quickly become a fog of studies and numbers. So in the spirit of keeping people honest, we review some of the arguments against raising the wage made in a Philadelphia Inquirer article by Pennsylvania Chamber of Business and Industry chief Gene Barr.
Natural gas drilling has transformed two Pennsylvania counties with the greatest development activities, for better and for worse.That statement in itself is not surprising, but two new studies from the Multi-State Shale Research Collaborative have a wealth of data on just how much these communities have been transformed. And some of the findings may surprise you.
Pennsylvania General Fund revenue collections fell short of estimate, for practical purposes, by more than $100 million in what is usually the largest month of collections for the year. March receipts typically get a boost from a swell in corporate tax payments, but lower-than-expected bank tax collections this March brought corporate tax revenues in well below estimate. Sales tax collections also missed the mark for the fifth straight month.
Property taxes have been a subject of much debate in Pennsylvania. Unfortunately, proposals currently before the General Assembly, including bills to eliminate school property taxes and raise state sales and income levies, do not address the primary issue — that too few state dollars are used to support public schools in the commonwealth. All property owners would be helped if Pennsylvania increased the amount of state funding provided to public schools.
State Senator Vincent Hughes of Philadelphia will unveil a plan today to assess a 5% severance tax on natural gas drilling in Pennsylvania. He told the Philadelphia Daily News that his plan will generate more than $1 billion for education by 2020:
By Parth Vaishnav (left) & Nathaniel Horner (right) of Carnegie Mellon University
A common argument against enacting a severance tax on shale gas in Pennsylvania is that the additional cost will cause the industry to leave the state. As graduate students in the Department of Engineering and Public Policy at Carnegie Mellon University, we decided to test that idea.
Pennsylvania's fee on Marcellus Shale gas wells is the lowest among 11 states examined by the Independent Fiscal Office in a new study out last week.
As PBPC Research Director Michael Wood told The Philadelphia Inquirer, "this report highlights what we've said for a while: The impact fee is low compared to other states." Read the Inquirer story for more.