It's a New Day in PA...
- Pennsylvania's economy is on the upswing. Months of higher than expected revenues and a federal tax reform law that's boosted employer confidence has many businesses revealing plans to invest dollars back into their facilities and workers.
- The state's Independent Fiscal Office is projecting the state will see $100 million in increased tax collections this year due to federal tax reform, and more than $200 million next year.
- The IFO also projects that in 2018, Pennsylvania's natural gas industry will add $219 million in impact taxes – up more than $46 million over last year.
...but natural gas companies are still being targeted.
- Despite overwhelming proof that the existing impact tax structure is working well, keeping us competitive and helping local economies statewide, Pennsylvania's natural gas industry is still being singled out for higher taxes.
- During his 2018-19 state budget address, Gov. Tom Wolf repeated the falsehood that Pennsylvania is the only natural gas drilling state without a severance tax; and challenged lawmakers to "do the right thing" by imposing another tax on this industry on top of the impact tax.
- The "modest" tax would be a $250 million volumetric severance tax, which when combined with the existing impact tax would be at a rate of 7 percent – higher than almost all the other natural gas drilling states.
- As we've been saying from the beginning, this would only drive companies – and the jobs they've created – to other states in the shale play!
While the governor calls this proposed tax "modest," he also claims it would bring billions of new dollars into state coffers –so, which is it??
In the ongoing push by some to have natural gas companies pay their "fair share," proponents of another severance tax don't talk about how much money the impact tax has already generated ($1.2 billion and growing).
They don't talk about the fact that this money has been distributed among all 67 Pennsylvania counties to fund important public projects.
They don't talk about the fact that the low cost of energy in PA has helped save school districts tens of millions of dollars in energy costs, which means lower taxes for Pennsylvania families.
The bottom line is that despite the billions the natural gas industry has already generated and continues to bring in, there is never a tax that they won't like!