Tax break was meant to encourage innovation in gas industry
AUSTIN - The original purpose of a state tax break that has been in place since 1989 was to encourage innovation and risk-taking by a struggling natural gas industry.
Business boomed after new drilling techniques such as "fracking" became commonplace, tapping massive reserves of shale gas.
Still, the tax incentive remains, and it's depriving state coffers of more than $1 billion a year in revenues, according to state data analyzed by Dick Lavine, senior fiscal analyst with the Center for Public Policy Priorities.
"It's obviously no longer an incentive, but it has reduced the state's revenue from the natural gas tax by half. Nearly three-quarters of all natural gas in Texas gets some kind of tax break," said Lavine.
This was discussed quite a bit last session. It should absolutely be cut off. These huge mega corporations and in some cases - foreign companies are just making huge profits all at the expense of Texas communitities.
If the society today allows wrongs to go unchallenged, the impression is created that those wrongs have the approval of the majority. -Barbara Jordan