Shale-Gas Tax on Hold
Gov. Ed Rendell said more time is needed to see how the industry develops in Pennsylvania. [In other words, lets wait until we lure them here and then we'll really fleece them]
An economic impact study by Penn State researchers said curtailment of drilling activity that would result from the imposition of a proposed severance tax would generate $1.4 billion less state and local total tax revenue between now and 2020 than if the industry is allowed to grow without the tax.
Opponents fear the tax would result in less job creation and overall economic benefits in Pennsylvania. The economic impact study predicts Marcellus Shale development will pump $14.17 billion into the state’s economy in 2010 and create more than 98,000 jobs, while generating $800 million in state and local tax revenues
Pike County Press Story
An economic impact study by Penn State researchers said curtailment of drilling activity that would result from the imposition of a proposed severance tax would generate $1.4 billion less state and local total tax revenue between now and 2020 than if the industry is allowed to grow without the tax.
Opponents fear the tax would result in less job creation and overall economic benefits in Pennsylvania. The economic impact study predicts Marcellus Shale development will pump $14.17 billion into the state’s economy in 2010 and create more than 98,000 jobs, while generating $800 million in state and local tax revenues
Pike County Press Story
Views: 292
Comment
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Comment by BuckinghamGasMan on September 11, 2009 at 6:58am
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Keith, I should add that I also receive 20% royalty. Paying 20% of the severance tax at 20% royalty is better than paying none at 18% royalty.
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Comment by BuckinghamGasMan on September 9, 2009 at 5:51am
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Yup
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Comment by Keith Mauck (Site Publisher) on September 9, 2009 at 3:10am
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you pay 20% of the severence tax?
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Comment by BuckinghamGasMan on September 7, 2009 at 8:59am
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Logically and from a Statewide view, it would be unwise for Pa. not to have a severance tax. If the tax was comparable to every other State, it would not drive any company away to one of those states. Look at the remnants of the Coal industry where there was no severance tax. Philadelphia businessmen got the money and taxpayers got the acid mine drainage. Look at the problems local governments will have fixing their roads after the trucks pound them into the ground.
I'm in favor of a well constructed severance tax -- and my lease requires that I pay 20% of the tax on gas found on my property!
By the way, I could probably pay other Penn State researchers to reach a totally different conclusion.
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Comment by Mmmarkkk on September 3, 2009 at 3:17pm -
Thank goodness he's put this off. But you're probably right about wait and lure them in before taxing the crap out of us! Politicians are driven by money and power...with one feeding off of the other!
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