Put Pa. ahead of political dogma
The fervor of election years often serves to divide the public along political lines. Lost in the heat of the moment is the recognition most issues are not inherently Democratic or Republican. They are matters affecting hardworking families and businesses, and, as such, deserve bipartisan cooperation and pragmatic solutions.
Just as leaders in Washington are ultimately accountable to the American people, Pennsylvania’s elected officials are responsible to the citizens of the commonwealth. Instead of posturing for political gain, government officials should stand up for policies that will advance the long-term interests of our state, region and country.
That’s why last fall we set aside our political differences to oppose a proposal to impose what would have been the nation’s largest severance tax on natural gas.
Responsible energy production has been a foundation of economic stability across Pennsylvania, breathing fresh life into industries far beyond the gas fields. Saddling traditional energy producers with burdensome new taxes would invariably harm one of the strongest growth sectors of our economy.
Between 2005 and 2012, the U.S. economy shed more than 378,000 jobs, according to a 2014 study by the Small Business and Entrepreneurship Council. During the same period, natural gas production across Pennsylvania expanded by more than 1,200 percent. Employment in the oil and gas sector grew by 169 percent. Importantly, those gains came where they matter most — in Pennsylvania’s small and midsized businesses. About 90 percent of energy extraction is done by companies with 500 or fewer employees.
Policymakers often invoke the false choice that we must choose between our environment and the continued development of our energy resources. But our success demonstrates a different reality: By implementing rigorous safeguards and sensible regulation, we could achieve a balance that ensures both the welfare of our local communities and reliable access to affordable energy, which is critical to sustainable economic growth.
Our commitment to working beyond partisan lines doesn’t stop at Pennsylvania’s shale fields, either. There are too many serious issues facing families and businesses across the commonwealth. Perhaps most important among them is the need for comprehensive tax reform — especially at the federal level.
In Harrisburg, we’ve put politics aside to pursue sensible reforms, such as the elimination of the inheritance tax on family farms and family-owned small businesses, as well as finally eliminating the state’s Capital Stock and Foreign Franchise tax.
Of course, more can be done to cut wasteful spending and lower state rates. This includes addressing Pennsylvania’s 9.9 percent corporate net income tax — the second highest in the country. Doing so will empower our job creators and encourage investment and commercial activity.
Similarly, we need tax reform in Washington to simplify the tax code, uniformly eliminate loopholes, lower rates and treat all industries equally. Following these steps would ensure our government does not pick winners and losers in the economy.
Fortunately, we are represented well by our members of Congress on prioritizing tax reform. For example, most of Pennsylvania’s congressional delegation (including our congressmen “GT” Thompson, Mike Kelly and Keith Rothus) all voted for the Protecting Americans from Tax Hikes (PATH) Act of 2015, which was a major bipartisan step toward comprehensive reform, and ends the year-to-year tax extension guessing game.
We hope both the House and Senate continue this momentum on comprehensive tax reform in the months ahead — at 39 percent (the federal tax rate of 35 percent plus the average tax rate among the states), American businesses face the highest effective tax rate among developed countries.
The federal tax code now exceeds 9,000 pages. For countless small and family-owned businesses, which lack the compliance resources of their large competitors, the complexity and bulk of the tax system has become unmanageable.
A study by the National Taxpayers Union last month found navigating the tax code costs Americans more than $234 billion each year in out-of-pocket expenses and lost labor time.
Providing relief to businesses and taxpayers will require action at the national level. We can no longer afford to kick comprehensive reform down the road or to wait for new leadership in the White House.
Voters are tired of politics as usual. Fortunately, the desire for effective leadership provides an opportunity to usher in an era of post-partisanship. We will continue to work with all lawmakers, regardless of their political affiliation, to achieve policies that advance the interests of everyday individuals. After all, that’s the purpose of public service.
Reps. Jaret Gibbons (D) and Donna Oberlander (R) are co-chairs of Pennsylvania’s House Gas and Oil Caucus. Gibbons serves Pennsylvania’s 10th District, which includes parts of Beaver, Butler and Lawrence counties. Oberlander serves Pennsylvania’s 63rd District, which includes Clarion and parts of Armstrong and Forest counties.
