To the editor:
I read Mr. Barrie Gibbs op-ed piece on March 11 with more than a little wonder. He seems to believe we are on the verge of crippling our energy industry with taxes. Pardon? According to Forbes Magazine, (that bastion of environmental liberalism) Exxon Mobil paid no federal income tax in 2009. Exxon Mobil denied this but refused to disclose their actual paym
ent. Range Resources’ annual report indicates a production cost of $.71 per thousand cubic feet of gas. In the same report, their cash flow estimates (that included a Pa. severance tax never enacted) are $3.479 billion after taxes, an effective tax rate of 25 percent. The CEO of CONSOL Energy told Bloomberg News last summer that he wouldn’t take $10,000 an acre for their Marcellus Shale holdings. Doesn’t really strike me as an industry on its knees from the application of Keynesian economic theory.
I think most folks want our businesses to do well. That doesn’t mean they should get a pass on the runners of $500 per hour tax attorneys when a lot of people are facing stagnating wages, give backs on benefits, and increased local taxes. Good luck with the railroad business Mr. Gibbs.