Politics, News & Issues >
Energy Issues
Get a Widget for this title
RSS FeedShould state governments be allowed to tax companies for helium that is extracted from natural gas?
Results so far:
| No | 63% | 5 votes | Total: 8 votes | |
| Yes | 37% | 3 votes |
No
Write now
Print
Invite a writer™
Add to FavoritesNo, this should not be allowed. It is a nonsense proposition.
I find it amazing that such an idea be contemplated. It transgresses the whole concept of taxation by the states, or the federal system for that matter.
Sure taxation in all its forms is necessary to fund the essentials of a modern society, which includes social services, education, infrastructure, defense and so on. It is also used to discourage some types of activity deemed deleterious to the community and in a comparative sense to encourage other types of activity considered more worthy. Taxation is a complex matter and is of major concern to politicians whose future depends on getting the right balance as perceived by the general public.
So, what about this bizarre idea of taxing helium extracted from natural gas?
Natural gas is essentially methane, a valuable hydrocarbon, and it has many uses, from burning in power stations to generate electricity (rather wasteful, actually), to being a chemical feed stock for industrial plants making more valuable chemicals, such as methanol, LPG and gasoline.
Most natural gas is not pure methane but contains other components, the most common being CO2, and minor amounts of the higher gaseous hydrocarbons such as butane and propane, plus rarely the inert gas helium.
Any ethane and butane is readily extracted on site and eventually is sold as LPG (liquefied petroleum gas) which fuels your backyard barbecue and in enlightened regions (e.g., South Australia) fuels your car. I drive a 20 year old Holden auto on LPG which costs half the price of gasoline.
In some US gas fields, helium is also a byproduct which, as a light inert gas, has many uses in industry, including giving the lift to blimps, or airships, that float around with advertising imploring you to attend the next ball game, or to conserve energy, or vote for Obama or McCain.
Companies that extract helium from natural gas are taxed in the normal way. That is they are taxed on the end-of-year profit as submitted to the taxation office. The cost of producing helium as a byproduct could well be equal to or more than the revenue derived from helium sales. So the idea of singling out helium to be taxed is just a nonsense invented by some bureaucrat who has no inkling of how the economy works.
The viable future of the USA depends on the freedom of the individual to operate within the capitalistic system kept within reasonable bounds by sensible government regulation. It is my view that the present influence of the Green's anti-development philosophy is now over-the-top and should be curtailed. The idea of taxing helium extraction is a typical example and there are countless more.
Ends
Learn more about this author, Allan Taylor.
Click here to send this author comments or questions.
Yes
When this country was founded and all the states become connected as they are now, it was to be hard for one government and one group of people to control the laws of everyone. So each state was assigned to have there own government. Each state government acting like a small version of the bigger country government.
Taxes set up on any thing was something that this country was founded against. Our ancestors left the rule of England so they could get away from unfair taxation.
How ever as time passed and the population grew it became clear that we had to start taxation to be able top afford much needed things.
Now taxes pay for better schools and better roads. To destroy what is bad and restore what we wish to use. In the forums of historical buildings and state offices. It builds highways and bridges.
Depending in the area you live in, just about everything is taxed. There is a tax on land, houses, new cars, alcohol, cigarettes, farming, clothing and more. There is no such thing as free in this country. Some one always has to pay for it. Even water must be paid for. Though one would assume since the earth is mainly made of water it would be free.
Chemicals and natural gases are no exception. They may seem to be natural but in fact , mixed with other objects they become unnatural and their use and ability changes.Helium can be mixed with many other chemicals to give that chemical a more of a unweighted affect and allow other chemical matters to be brought forth stronger. Making them more palpable.
Helium , which isn't just used for hot air balloons or floating party balloons, but is also use in missile fuel and different military weaponry, should be taxed by each state it is obtained from because of what it can be used for. Its uses give it a more higher value and each state should be allowed to tax companies as they feel needed.
Each state may tax differently but since helium doe have such a great value the tax dollars gained from such tax could be used for each states personal uses. Like better schools and so on.If a state must pay a tax or charge a tax on water then helium should be no exception. Because helium is indeed a gas there should be a uniformed government tax between states and federal governments as well. If for any thing more then a safety issue. Because as with all gases helium also can cause as many health issues as helps to fix.
Learn more about this author, Penny Babson.
Click here to send this author comments or questions.
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Difference of opinion? Debate now.
- Energy Issues
- Is increasing nuclear power's share of our power generation worth the risks?
- Should individuals take voluntary action to curb their energy consumption?
- Do tankless water heaters help save energy?
- Should the federal government repeal tax breaks to oil and gas industry?
- Is capturing and extracting carbon dioxide the key to solving our energy crisis, as Shell's Danish CEO touts?
- Should the government stop providing subsidies to all energy sources, eg, coal, oil, solar and wind?
