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Energy & Environment
Research & Commentary: Pennsylvania Severance Tax
Pennsylvania Gov. Tom Wolf (D) is proposing a $2.5 billion net tax increase as part of his 2015–16 budget. These tax hikes include a new 5 percent severance tax on natural gas, calculated on the value of gas at the wellhead plus 4.7 cents per thousand cubic feet of gas extracted. This Research & Commentary by Matthew Glans and Isaac Orr examines the proposed tax and how natural gas is currently taxed in Pennsylvania. Glans and Orr argue legislators should recognize avoiding severance taxes creates a competitive advantage and should resist the temptation to impose them. “Wolf’s proposal represents a 16 percent increase in the size of the state budget. Instead of increasing taxes on a thriving industry, Pennsylvania should focus on keeping taxes low and holding government spending in check.” Read more
Budget & Tax
Research & Commentary: Gov. Bentley’s Tax Hike Proposal
In an effort to combat what he claims is a $700 million budget shortfall, Alabama Gov. Robert Bentley (R) has proposed a series of tax increases designed to generate $541 million in new tax revenue. These eight tax increases include a rise in the sales tax for automobiles, a tax on car rentals, and an excise tax on tobacco products. In this Research & Commentary, Matthew Glans argues sin taxes and tourism taxes distort markets, reduce economic competitiveness, and encourage unsustainable increases in government spending while placing an excessive burden on lower-income taxpayers. “Instead of creating and increasing discriminatory taxes, states should focus on tax reform that lowers rates, puts dollars back into the pockets of taxpayers, and encourages government efficiency by creating reasonable limits on spending.” Read more
Telecom
The Trouble with Google as Truthsayer
Ron Arnold, executive vice president of the Center for the Defense of Free Enterprise and a policy advisor to The Heartland Institute discusses Google’s possible transition from ranking websites by links to ranking them by truthfulness. Arnold is concerned that allowing a company to determine what is and is not factual opens the possibility for bias and censorship. Read more
Education
Research & Commentary: Wisconsin Higher Education
Wisconsin has a $283 million budget deficit for the fiscal year ending June 30, 2015. That shortfall is expected to balloon to approximately $2 billion in 2015–17, according to the Legislative Fiscal Bureau. These figures spurred Gov. Scott Walker (R) to introduce significant money-saving changes to the operation of the University of Wisconsin System (UWS). In this Research & Commentary, former Policy Analyst Taylor Smith wrote, “[R]educing state higher-education funding after a period of aggressive spending is reasonable, especially if greater autonomy is granted in exchange.” Read more
From Our Free-Market Friends
Work Requirements Work Well for Welfare
Debate over whether or not to expand Medicaid under the provisions set forth in the federal Affordable Care Act, or Obamacare, is reaching a fever pitch in the states that have so far rejected the expansion, as federal funding is set to wind down after 2016. Foundation for Government Accountability’s Research Director Jonathan Ingram states, “While work requirements would be an improvement to an otherwise devastating expansion of Medicaid welfare, they cannot turn a terrible policy into a good one.” Read more
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