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Thursday, December 10, 2015

PA.  SENATE  PASSES  SPENDING  BILL

TAX  INCREASES  NOT  REVEALED

The senate passed a $30.8 billion spending bill. It has not yet specified how the revenue will be raised to support this spending. It is rumored that they plan to expand the items that will be covered by the sales tax.
This bill was introduced and voted on within 24 hours. It is more top-down legislation, cobbled together in the back room, without input or amendments by members.  It really appears to be a cynical attempt to push it over to the House, where the chances of it passing are slim, especially without the means to pay for it addressed-this way the Senate can say they did their part , the House is the problem.
All have acknowledged fracking taxes are going to be irrelevant, as it is likely that the natural gas industry in Pennsylvania may not survive.  There should be an effort by Penn. to lobby Obama to allow exports of natural gas. This industry has been a bright spot in a dismal economy.  Everyone is enjoying low energy prices for now, but when US fracking business is liquidated, we will then be at the mercy of Middle East oil. This is either a uninformed decision by our national leaders, or they are accomplices in this energy war.
The state revenues have increased since last year, they should make due with what they have. They are giving subsidies in the many millions to the horse racing industry, Hollywood and other corporate free-loaders. The legislature should spend the next session going over the entire budget and eliminating the fat that is not an essential function of government. If done in a contentious way, I have little doubt that they could find a lot of money.

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