Pennsylvania Governor Continues Fight for Severance Tax

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He said, “We are still the only natural gas producing state that has not taken this common sense step. The Independent Fiscal Office has said that 80 percent of the revenue raised by a reasonable severance tax would be paid by customers outside of Pennsylvania. Pennsylvanians deserve to share in this prosperity.”

Furthermore, Gov. Wolf emphasized that severance tax should not be a partisan issue because it “makes sense. He reiterated that the politicians refusing to pass a severance tax want to see him fail rather than see Pennsylvania succeed.

According to him, their objective is “just plain wrong and the quintessential example of what’s wrong with Harrisburg.”

Pennsylvania Senate passed approved severance tax

In July, the state senate passed legislation to eliminate a $2.2 billion budget deficit. The legislation included heavy borrowing and tax increases on consumers’ utility bills and online purchases among others. The legislation also included severance tax in natural gas drilling, which is expected to generate annual revenue of $100 million. However, the House rejected the Senate’s legislation.