Conservative group says a Marcellus Shale Impact Fee is a New Tax

Americans for Prosperity Pennsylvania and its State Director, Sam Rohrer, are calling on Governor Corbett to continue to honor his pledge to not raise taxes, and on the Legislature to break from taxation and spending, as a bill to impose a drilling “impact fee” makes its way through the Pennsylvania Legislature.

“We know how difficult it is to attract new economic development in this Commonwealth,” said Rohrer, “and we also know just how desperately we need this type of growth. High tax rates, fatiguing regulations and permits, all serve to make this state difficult at best in which to do business. And now with the discovery of abundant natural resources in the form of natural gas, and the promise of broad based economic prosperity on the horizon, the ‘tax and spenders’ emerge again.”

Rohrer likened those in favor of tax and spending to mosquitoes that seek to engorge themselves on the very life-blood of others. “And it’s not just one side of the political isle,” Rohrer insisted. “In reality, there are tax and spenders on both sides and in both the Senate and House.”

For some time, members of the Legislature have pushed to impose a severance tax on drilling. Thus far, Governor Corbett has kept his promise to not raise taxes. Rohrer says that the Governor has made this intention clear by vetoing any such tax and has “tied his integrity directly to the honoring of this pledge.”

AFP-PA supports the Governor in upholding his promise to not raise taxes during his administration, said Rohrer, "and in addition, we steadfastly encourage and support serious, overall tax reform and recovery. We strongly oppose any effort to add a new tax—in any form, by any name. We urge the Governor to continue to do the same. These are critical times when Government should be looking toward serious, overall tax reform, not for more money to spend.”

According to Rohrer an involuntary financial assessment, by any name, is a tax. Call it what they like,” he argued, “but the proposed ‘impact fee’ coming from proponents in the House and Senate is nothing short of a new tax.” “It makes no difference” Rohrer firmly asserted, saying that regardless of that for which the proposed new revenue stream would potentially be used, “a promise is a promise. If Governor Corbett signs off on this ‘impact fee’ it boils down to a new tax, and a broken promise to the taxpayers.”

“It’s time to be forthright,” maintained Rohrer, who went on to cite the following as reasons the Legislature and the Governor must resist and oppose all efforts to impose any new tax:

• “To position this new ‘fee’ or ‘impact fee’ as something other than a “tax” is dishonest. Individuals and business owners recognize that there is no difference.”

• “To seek such a tax increase on a newly developing industry, regardless of its potential size and ability to pay, and especially in the absence of clear necessity, is a form of governmental extortion.”
  

Rohrer went on to point out that Pennsylvania is already receiving significant increases in revenue and that as new industry-related businesses spring up, and jobs with them, the state will continue to see increased revenues without any change in the current tax structure. He projects that the growth in this industry will naturally result in additional contributors to Income taxes and other current taxes.

“No new tax, fee or substantive ongoing financial assessment should be imposed on this or any new industry without a comprehensive overall restructuring of our corporate tax system,” said Rohrer.

If the Governor signs any tax or fee increase, Rohrer says it is a violation of his pledge. “The legislature and the Governor should focus their attention on reform of our uncompetitive tax system and work toward eliminating the host of job-killing regulations that plague the job creators of this Commonwealth.”

“To those committed to economic prosperity and job creation,” Rohrer says that now is the time for true leadership, and he is calling on them to “stand up and protect liberty and prosperity from bloodsucking, by opposing this massive tax increase.”