Time To Eliminate Gas Production Tax Cut

Back in 1989 the Texas budget was in good shape, so the legislature acted to help the gas industry. In an effort to spur more gas drilling, they gave the gas industry huge tax cuts to develop the technology to drill for natural gas in places where it was much more difficult to get. And it worked. The technology was developed and there has been a huge increase in drilling in those areas (most notably the Barnett Shale).

Things are different now. Due to Republican mismanagement the state is mired in recession and faces a budget shortfall for the next biennium of about $27 billion. And there are some who think it's time for the tax cuts for the gas companies to end. The technology has been developed and is being used every day. Now that tax cut just goes to fattening the bank accounts of the giant gas producers.

State Rep. Lon Burnam (D-Fort Worth) has introduced a bill to repeal these tax cuts. Burnam (pictured) says they are no longer needed and repealing them will put about $2.3 billion over the next biennium. That wouldn't fix the budget shortfall, but it would certainly be a good start. And amazingly, it looks like at least some Republicans are willing to at least consider the idea.

State Senator Steve Ogden (R-Bryan), chairman of the Senate Finance Committee, is saying that "everything" is on the table. He's considering appointing a sub-committee to examine removing the unneeded tax cut.

I suspect the move to consider the tax removal is little more than a publicity gimmick by the Republicans. When their draconian budget cuts result in the lay-off of 100,000 teachers and tanks the Texas economy, they want to be able to say they considered all ideas and were "forced" to make the cuts. It's not true (much could be done to avert or minimize those budget cuts), but that is the story they'll be trying to sell to the citizens.

The tax should be repealed. It has served its purpose and is no longer needed. And Texas needs those companies to pay their share of taxes to help pull the state out of the mess the Republicans have put it in. But what should happen and what will happen are two different things.

Texas Republican leadership in Austin sold out to the corporate interests long ago, and their actions regularly favor corporations over citizens. It is very unlikely that this sensible bill will ever make it out of the legislature, and if by some miracle it did, Texas' corporate-owned governor would probably veto it.

This is a good bill and it would help the citizens of Texas. That's why the Republicans will kill it.