Severance Tax Persuasive Speech

In the world we live in, the human population is dependent upon a seemingly endless list of objects and resources. The list consists of certain necessities that have been required since the dawn of man, including food, water, shelter, but the list is always increasing. In the past couple centuries it seems as if the list has increased at an exponential rate, adding staggering degrees of technology, sources of communication, and of course energy. One of the major sources of energy is natural gas. An ongoing debate within each state consisting of the United States of America is whether to impose a severance tax on natural gas extraction. Every governor and the state in which they reside has decided to impose a severance tax on natural gas extraction, except former Governor Corbett in the state of Pennsylvania. The forty-sixth governor of Pennsylvania, Tom Corbett, displayed significant courage, the type of courage that epitomizes leadership. Instead of submitting to the status quo and becoming a follower, Governor Corbett fulfilled the title of a leader and supported what he believed would be most beneficial for the Commonwealth
of Pennsylvania. He knew very well of the possible negative repercussions this could bring to his public view and oncoming election, but he still supported not imposing a severance tax on natural gas extraction. The reasons why Governor Corbett believed imposing a severance tax on natural gas extraction in Pennsylvania could prove to be detrimental are plentiful and extremely relatable. He made emphasis of Pennsylvania’s varying other taxes, and the potential negative effects on the intra-state economy. “Corbett flat-out opposed to a severance tax – in fact he’s promised to forgo all tax increases throughout his tenure as governor.” (“Meet Tom Corbett) As stated in an article Corbett was set on keeping a promise that he made at the beginning of his term, to avoid raising or levying any new taxes.
Although Governor Corbett never directly shed light on this fact, it must be noted that Pennsylvania in the year 2012 held the third highest corporate tax as well as a high income tax. ("Natural Gas.") Thus the combination of these taxes with a fiver percent severance tax that has been constantly suggested could prove to be too much for companies to endure. In regard to the taxation within the state of Pennsylvania, Governor Corbett was merely doing what he thought was best. ("Poll: Pa. Backs Fracking; Corbett's Handling of Issue, Less
so.") Governor Corbett had the intentions of bettering Pennsylvania economically, and he believed that imposing a severance tax would in fact serve to hinder this economic growth. (“Pennsylvania Weighs New Tax on Natural-Gas Drilling.”) He advocated the importance and the notable potential for economic growth and development that could result from business resulting from the extraction of natural gas. Former Governor Corbett once said, “Let’s make Pennsylvania the hub of this [drilling] boom. Just as the oil companies decided to headquarter in one of a dozen states with oil, let’s make Pennsylvania the Texas of the natural gas boom. I’m determined that Pennsylvania not lose this moment. We have the chance to get it.”(“Meet Tom Corbett.") As displayed in the quote, he believed that the natural gas reserves in Pennsylvania could prove to be extremely lucrative. The process of extracting natural gas from these reserves creates large numbers of jobs for citizens of Pennsylvania. Creating 44,000 direct and indirect jobs and it is expected to generate 111,000 new jobs and $987million for Pennsylvania’s economy in oncoming years, and then in the long run picture 200,000 jobs created in the next decade. (“Visit Our News Center for Expert Coverage of the Exxon Oil Spill in Arkansas.") As one can see it is hard to ignore those astonishing logic. Governor Corbett was led to believe that if he did indeed impose a severance tax that it might prove to significantly reduce these impressive numbers. It was also believed that if the severance tax was imposed that it would cause a ripple effect throughout the economy. It would raise the price of manufacturing, thus it would raise the price of the product as well as reduce the number of jobs available. In the eyes of Governor Corbett, the imposition of a severance tax would prove to be detrimental to the Pennsylvanian economy. Governor Corbett was doing what he believed was best for the citizens, where as all of governors who did impose a severance tax were doing what was best for the government. It is important to honor and recognize former Governor Corbett’s knowledge on the matter of a severance tax on natural gas extraction. He supported what he believed was best for the citizens of his state regardless of the possible political repercussions.