Thanks for this article Phil. Very nice example. One thing to point out here is the use of taxes to reach a policy goal. That is, we often think of taxes as dealing strickly with revenue (or lack of) but many times taxes can be used to limit activity (in this case, possibly drilling).

Natural gas fuels hot debate in Pa.

Many of the terms and concepts discussed by Rubin in Chapter 2 are referenced in the 1/18/10 Public Opinion article “Natural gas fuels hot debate in Pa.”

http://www.publicopiniononline.com/ci_14213840

The state is trying to decide whether to tax the companies that extract Marcellus Shale gas even though they already secure revenue from lease fees and future royalties. It’s interesting to read about the Democrat and Republican policy and revenue positions related to a state natural resource and the companies that will benefit from the gas extraction. I find it especially interesting that Governor Rendell wants to help the industry become an economic engine for the state but also share the tax burden beyond lease fees and royalties. While the newspaper article does note that most of the lease revenue goes to the general fund, I wonder whether the governor would consider earmarking tax revenue from Marcellus Shale gas extraction to help protect the environment where the drilling takes place?