Housing Alliance of Pennsylvania Endorses Natural Gas Tax
|January 16, 2014||Posted by Mike OMara under Rent recovery or avoidance, The Progress Report|
This 2014 excerpt of an email from the Housing Alliance of Pennsylvania, Jan 15, is by Cindy Daley, Policy Director.
A natural gas tax in Pennsylvania is being used to fund programs to alleviate homelessness.
The natural gas is extracted from the Marcellus Shale.
The tax feeds into the state Housing Trust Fund money.
With just $16.5 million from Marcellus Shale Impact Fees in its first two year, the Fund leveraged another $170 million, all of which helped 1,759 households.
The funds produced homes within reach of low wage workers and Pennsylvanians on fixed incomes. Many of those homes come from rehabbing vacant, blighted properties or helping property owners fix up the old homes they live in or rent out.
Co-editor Notes: Of course, the tax on natural gas extraction is partly a tax on the activity of extracting it – ideally, a tax on natural gas should only include compensation for lowering the future value of the location due to the extraction, plus any impacts on the area due to the extraction activities.
The Housing Alliance of Pennsylvania wants to expand the fund. If that expanded funding would include other kinds of taxes, then a land value tax would be the most appropriate, and is even related to the tax on extraction of natural gas from the Marcellus Shale, since both are forms of taxes that compensate others for excluding them from using that land.
A tax on natural resource extraction is a cousin to a tax on land value, since each is a tax on an aspect of land, which no person produced, and compensates others for excluding them from access to that land. So, both forms of taxes on land should be used to fund programs to address homelessness, while lowering taxes on labor, jobs, houses, buildings, and production.