Inadequacy or absence of current natural gas state severance taxes has contributed to a less than an equitable situation for state taxpayers and their environment; in our opinion. Currently 28 states impose a severance tax and the remaining 22 do not. There exists a wide disparity in the amount of severance tax percentages. For example: (1) Alaska 25% with no income tax, (2) California .13% with 9.3% income tax (Ouch!), and (3) Pennsylvania 0% with 3.07% income tax.
Compared to other countries, the United States receives one of the lowest shares of revenue for oil and gas.
Taxing natural gas will help moderate a safe and effective start. The facts are: (1) much of it is being sold at bargain basement prices to the Chinese, and (2) we’re likely heading for another ENRON Bubble.