Article Contributed on: 10/21/2008 7:29:23 AM
One of the ballot initiatives this year is Amendment 58. It's what's called a severance tax.
For some strange reason we subsidize oil and gas companies here in Colorado to the tune of $300 million a year. That's some tune!
Don't think in terms of 58 as somehow "punishing big oil." The companies employ thousands of people and generate the energy our country needs. It's expensive for them to do so.
Wyoming for example has a 33% severance tax. It generates a lot of money from oil, gas and coal. It's helped the state develop a "Rainy Day" fund which shields the state from both upswings and downswings in the economy. Things hum along very steady. Makes it easy to plan.
In both cases, yes, the cost of these taxes are passed on to consumers. But mostly from other states who buy and consume the energy Wyoming and Colorado produce.
We have it, they want it. They should pay accordingly. It's no difference when you visit New York for example and pay several add-on taxes on your hotel bill.
In our case, 60% of the revenue generates would go for scholarships for Colorado students.
Amendment 58 makes sense at all levels of common sense. Again, don't confuse it with punishing anybody. These are our resources. Oil and gas companies get their share. More importantly, so do we.
So don't be fooled by the anti-58 ads.
Amendment 58: Vote YES.