As the topic of severance taxes heats up in Pennsylvania and Ohio, it’s worth investigating exactly what severances taxes are and why they are implemented.
When legislators debate severance taxes, it is seldom about making sure localities have enough resources to deal with the increased traffic, and consequent wear and tear on the roads and other public infrastructure, or greater environmental protection enforcement designed to protect the people closest to the impacted area.
More often, the taxes are an estimate of how much money government officials can take from one group, typically job-creators that harvest natural resources, without completely removing their incentives to do business in the state. That makes it possible for politicians to fund their pet projects or popular measures in election years with general-fund monies at the expense of local communities and business owners.Read the entire article by clicking here.
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