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Tell Us: Your Take On Corbett's $1.65B Shell Oil Tax Break?

Do you support Gov. Tom Corbett's proposal to give Shell Oil a $1.65 billion tax break?

 

Gov. Tom Corbett wants to give Shell Oil tax credits worth $1.65 billion over 25 years so the company will build a refinery in western Pennsylvania to capitalize on the Marcellus Shale natural gas boom, according to Businessweek.

Corbett says the deal could help reinvigorate manufacturing in Pennsylvania and create jobs.

Critics say Shell would probably bring its business to the state without the tax incentives. Corbett has also been criticized for cutting social service and school funding.

Shell is the world's second largest company by revenue and made profits of $31 billion last year.

 

Related Topics: Marcellus Shale, Shell Oil, Tax Incentives, and gov. tom corbett

Frank

8:04 am on Thursday, June 7, 2012

Governor Corbett was a BAD idea.

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BGK

10:16 am on Friday, June 8, 2012

We, Citizens of Pennsylvania, have had bad luck with Corbett and the last 2 Governors. I wonder with this tax pledge if he is getting free Shell Gas for his Suvs!!!

Dana Grubb

8:24 am on Thursday, June 7, 2012

Taking care of wealthy corporations like Shell while hammering away at and reducing funding for libraries and education. Now there's a magical formula to secure our nation's future.

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Mike Faccinetto

10:13 am on Thursday, June 7, 2012

Nothing this Governor does anymore surprises me. For not having any money in Harrisburg he sure gives a lot away.

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bill frome

10:53 am on Thursday, June 7, 2012

If it brings jobs heck yeah I support it. The amount of the tax breaks will be offset by the number of taxes Pennsylvania will get from the new jobs the refinery will create its common sense. These jobs will be middle class jobs not minimum wage jobs. Plus If other businesses can get tax credits wh not shell who will bring 1000's of jobs. Its ok the new building projects that will be built in Easton for seniors and low income people gets tax credits but not a company who will bring 1000's of jobs and add more middle class families to Pennsylvania.

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Carol

12:11 pm on Thursday, June 7, 2012

Corbett has an opportunity to set up PA for the future with the Marcellus Shale with a balanced combination of taxes, fees and incentives. Instead, he chooses to give it away. There is no way that he should be giving incentives to foreign corporations.

Actually, most of the tax giveaways to corporations are based on bogus job projections. Agere got big tax breaks for their mostly empty and unbuilt palace based on the promise of 10,000 people working there. Now the Union Blvd. building is empty or razed and the Hanover Township site is only half built, and much of that is vacant.

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Jose romero

12:21 pm on Thursday, June 7, 2012

Talking about Hand-outs...It is always the peoples Bank that pays for everything. Politicians and the Corporations rob the US Treasury and we allow them to do so! So what go ahead Governor get them more money they didn't qualified for bail out in 2008...They have to depend only on the price of gasoline, those poor gasoline corporations. :(

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Jose romero

12:26 pm on Thursday, June 7, 2012

Hey the those poor guys didn't qualify for the bail out in 2008-2009, so they need the money for Bonuses to their CEO's, also for PAC contributions to the same people that approve this kind of breaks. We the People are nothing but cattle for the politicians. I retired from one job and had to take another because I couldn't survive...Governor you will be unemployed next term.

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another point of view

12:40 pm on Thursday, June 7, 2012

They say Sarah Palin is stupid. When she was Alaska's governor, she was responsible for a revenue sharing scheme that gives each Alaskan resident a piece of the taxes paid by oil corporations for their profits on Alaskan oil. Each resident gets a check for 10 -12,000. Oil rich countries like Venezuela keep gas prices at less than 30 cents a gallon. Alaska could not do that. But, each resident gets a check to keep their gas and heating expenses low. Mr. Corbett, where's my $10,000 check? Oh, you gave it to Shell Oil. I just paid 3.50 a gallon to fill up my car with Shell gas. When they report their multi billion dollar profits, I am going to feel good that I contributed in two ways - I paid for their inflated gasoline prices, and I gave them a billion dollars in tax credits. Pennsylvania energy is a give away program for rich, undeserving oil and gas companies.

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another point of view

3:22 pm on Thursday, June 7, 2012

My error. For the sake of word economy I placed too many thoughts in one sentence which misleads the reader. Alaska oil dividends have been paid since 1982. In recent years payments have been $1100 to $1300 per resident. When Sarah Palin was governor, she imposed an additional tax on oil companies because of high profits and gave each resident an additional $1200. (The tax has continued but the additional $1200 payment has not.) That $1200 amount was on top of the dividend payment of $2069 for each resident. A family of four received total payments of $13,076. If a child places all of his money into a college plan that child will have enough money to pay for his or her education at the state university.

bill frome

3:07 pm on Thursday, June 7, 2012

Ok take away the tax credits and see if shell builds their refinery in PA. When its built in west Virginia or Ohio because that state was willing to give them incentives you will be complaining that Gov. Corbett should of done more to keep shell here. You want jobs but aren't willing to do the neccessary things to get businesses to come to pennsylvania. Makes no sense can't have your cake and eat it too.

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another point of view

4:27 pm on Thursday, June 7, 2012

The tax credits are not the answer. Pennsylvania continues to be ranked poorly as a business friendly state. Pa. has strengths - quality higher education, natural resources and proximity to major markets. Despite those factors Pa's business friendly ranking fell from 27th in 2006 to 39th in 2011. The state has one of the worst legal climates - no tort reform legislation. We continue to have what is the highest effective corporate net income tax in the United States, 9.9 percent. Our unemployment compensation taxes are No. 8 in the United States, and we pay out more money on unemployment comp benefits than any state other than California. We do not offer right to work as neighboring states. Our legislature needs to correct an unfriendly legal, tax and regulatory environment. That should be done easily particularly with a Republican governor and legislature. Then, tax give- aways will not be needed to attract business. Will these corrections ever happen? I doubt it. Pennsylvania has the most corrupt state government in this country. How many legislators, judges and others are in jail or on their way! I would strongly recommend Shell to locate elsewhere. Harrisburg needs to fix its house, first.

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Steve

4:43 pm on Thursday, June 7, 2012

Shell can build this refinery in any state it chooses. The article doesn't mention the cost of the refinery is $ 4 billion and would add up to 10,000 jobs. Furthermore, this project would not take away from the state......it would not add tax revenues from shell but it would add tax revenues from all the jobs and business it creates. It comes out to $66 million a year of 25 years. Net, net, this creates more jobs and more net tax revenues for this state in the end and doesn't cost the state a penny.

So sad that most people don't understand that PA must compete with other states for massive project like this but in the end, this tax credit will still be a plus for this state. I bet most people don't realize that for the 1st time US refiners are actually shutting down because they are losing money. So even with the tax credit, this project could prove to be a poor return on their investment.

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bill frome

4:47 pm on Thursday, June 7, 2012

That makes no sense. We want jobs so why would we tell shell to locate somewhere else??? If tax credits will make them build their refinery then give it to them and then worry about reform. We need jobs!!!

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truth seeker

6:40 am on Friday, June 8, 2012

Bill - the job creator argument is so weak here, this is about staying in the pockets of the big boys. Some poeple care nothing for the people and focus only on the corporations. This same argument was used not to tax marcellus despite the fact that all other states tax it where it exists (even West Virginia has a severance tax).

another point of view

5:49 pm on Thursday, June 7, 2012

First, If a new refinery operation is that delicate and has risks of failure as is suggested (because many first time US refineries are shutting down), then, all the more reason to locate the facility where it has a better chance for success. Pennsylvania's business climate and its averse tax, legal and regulatory issues will certainly sink a risky, new business operation. Second, if we move reform to a non-priority, reform will never happen. The next big business will get the tax breaks and the next big business after that and the climate will continue to be non- supportive. The state needs to examine its self esteem. We do not have a legislature. We have a building of representatives who are elected and continued in office by special interest groups. It's dirty. It has to change. When that factor changes, businesses will come here by the boat load. I have to imagine that any business considering locating in Pennsylvania must be thinking that they are dealing with a South American dictatorship with all of its corrupt trappings. Where do Mexico's Diaz, Cuba's Batista, Nicaragua's Somoza live? I am beginning to think that they all have been reincarnated here. Where does the plundering stop? Why would you think Shell Oil would want any part of that? How many businesses are closing their doors to leave the state? Too many. Shell is not going to reverse that trend. Our state cannot do anything right for its citizens, only right for the guy with the money bag.

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Susan Koomar

9:21 pm on Thursday, June 7, 2012

Folks, I just want to thank you for your thoughtful and passionate comments. Please keep 'em coming.

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Andrew Geissinger

11:37 pm on Friday, June 8, 2012

The governor’s proposal is bad policy. Unfortunately this type of policy has become commonplace in our modern welfare state.

If tax breaks need to be given to corporations so they locate their businesses in Pennsylvania, then this is a tacit admission on the government’s part that perhaps taxes are too high. It could also mean that the cost of complying with regulatory requirements is too great.

Pennsylvania has a corporate tax law. All corporations in the state should comply with it. We shouldn’t grant exceptions. If taxes are too high, then the appropriate way to deal with that is to cut taxes equally across the board.

If the cost of complying with regulations is too great, the way to deal with that is to identify regulations which hamper enterprise and aren’t needed for legitimate safety reasons. Those regulations should be abolished. We need a regulatory environment that encourages entrepreneurship and creativity. Businesses shouldn’t have to wade through hundreds of pages of regulations to figure out what they can legally do or what they are required to do. They should instead be serving their customers.

If these reforms were implemented, then the state would have a good business environment and there would be plenty of jobs. And they would be productive jobs based on consumers' needs rather than jobs politicians or special interests want to pad their resumes or profit on the taxpayers’ dime.

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John

9:57 pm on Saturday, June 9, 2012

So if I understand you correctly, get rid of all of the politicians and lawyers? Sign me up!!!

John

9:53 pm on Saturday, June 9, 2012

Maybe I am reading this incorrectly. Presently, the state gets $0.00 from Shell because it has no business in PA. So to incentivize them, we offer them tax benefits of 1.65B over 25 years, or $66 million/year. This state needs help now, and a tax credit of $66M doesn't suggest they pay $0 taxes, just $66 million less. But today we get $0.00. Even if we broke even, we still win! And if some of the really bright people here can please prognosticate what $66 M will be worth in 2037, I would be much appreciate that fact. The other option is not to pull the trigger, have them take a better offer from West Virginia, and in 2037 nobody will remember who the PA Governor was who blew that deal. However based upon recent Left response to most, the Democratic Governor in 2037 will be blaming all of his problems on that guy Tom Corbett back in 2012 for allowing this deal to slip away!

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