Severance tax would decrease revenue
Whenever I see a letter to the editor or commentary article by Oren Spiegler, I make sure to read it. He is well-informed, eloquent and most often on the right side of an issue. His July 8 commentary piece, however, was a mixed bag.
I agree with him on the privatization of our liquor stores and wish the state would let the free market work its magic. Enough said.
On the issue of a severance tax on oil and gas drilling, I must disagree. One of the universal economic truths that so many legislators fail to recognize is that “you get less of what you tax more.” The natural gas industry, because of supply, is currently facing the lowest prices we have seen in years. As a result, we are seeing production levels curtailed. We do not need to impose another tax and give this industry yet another reason to scale back production. This action will only have the opposite effect of increasing revenue to the state.
Gerald Segelstrom
West Alexander