At this hour, (4:45 pm) the House is debating a severance tax. If the House approves the Democratic sponsored severance bill, it will open the door to tax energy companies. At 39 cents per thousand cubic foot to start – it would become the most expensive tax in the nation for drillers working from Pennsylvania’s Marcellus play.
A spokesperson, for Democratic House Majority leader, Todd Eachus told RockTheCapital.com, “it’s a common sense thing that crosses party lines,” said Brett Marcy.
If it passes, the measure will move on to the Republican led Senate where it will face strong opposition. In large part over the whopping tax percentage – a feeling, among some, that it is too much of a financial burden to put on gas and oil companies. Concern is growing that some drillers will pack up and move on out.
“The logic of imposing a highest in-the-nation tax on what is one of the few bright spots in Pennsylvania’s economy right now eludes us. We support a competitive tax rate with a distribution plan that adequately supports both environmental project and the local governments being impacted by the Marcellus Shale Development,” said Erik Arneson, Spokesperson for Republican Senate majority leader, Dominic Pileggi.
If the bill dies in Senate, it could well take another four years to pass a severance tax. Front running Republican Gubernatorial Candidate, Tom Corbett, is steadfast in his opposition to placing another tax the energy industry.
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