Taxing “Because they do it” is Insanity

Many say that PA needs to follow the lead of other Natural Gas producing states, and have a severance tax on natural gas. That we “need” the tax revenues. That we are the “laughing stock” of these states because we don’t tax that production.  This article lays out what the tax burdens are, by state.

So here you go. PA (at least in FY2011) was ranked as the 10th highest tax burden. That’s the top 20%. The states with the lower tax burden? The very natural gas/oil taxing states they say are laughing at us. (Texas, OK, and others) I bet they are laughing!

I have said all along–I support emulating those states, so long as we emulate their full tax picture. No, or low, state income tax. No state sales tax on many things. etc. Sadly, each state really is different with different dynamics, different political and social pressures and needs. I get that. So we can’t be “like Texas” or like Fl, or NH, and have no state income tax. I get that–but then don’t say we should be like them with Natural Gas taxes either. Let’s decide for ourselves if this is a good decision or not, not simply becaus

e “they do it.”