Pennsylvania Governor Ed Rendell is the new Don Corleone. Remember the scene in the "Godfather" when the Hollywood producer wouldn't give Don Corleone's favorite actor a part in his movie? Rendell sure does! The governor, who is pushing a new tax on natural gas extraction to pay for a budget deficit that is the result of massive overspending, sent State Representative Tim Solobay of Washington County a decapitated head taken from a bobblehead doll that resembles Solobay during a recent floor debate. The reason: Solobay, like many other State Reps and Senators in Harrisburg, opposes the governor's extraction tax.
While some may find "Don Rendell's" stunt humorous, the tax itself is no laughing matter. As NTU has pointed out, a severance tax on natural gas production would only increase energy costs for consumers and stifle gas production, as energy companies face higher costs for natural gas development. Faced with higher costs, they will pass that cost onto consumers in the form of higher utility bills. According to the Commonwealth Foundation, states with severance taxes, such as West Virginia, have not experienced as much economic growth in their energy sector, as states without a severance tax. In fact, states such as Texas and Arkansas have actually gone so far as to delay or reduce their severance taxes to encourage more natural gas production.
As the budget process continues into the summer, it is very possible that Rendell will increase the use and severity of the pressure tactics to get his tax hikes through. Lawmakers should be wary of any offers of rides to the tollbooth or dinners at Louis.' Lawmakers should resist any and all such pressures for the sake of Pennsylvanians who will have to face higher energy costs and instead call for real reductions in state spending, which is the only sure way to balance the budget.