IFO: PA Gov. Wolf Proposes Highest Severance Tax in Nation

IFO logoNot only is PA’s Gov. Wolf stubborn, he’s stupid too. Dangerously so. Wolf and those he has surrounded himself with are hellbent on enacting a severance tax on the Marcellus industry in the state, as a way of paying back teachers’ unions for their support of him in the last election. Wolf, with the aid of willing liars in mainstream media, continuously repeat the same lie: PA is the only oil and gas state without a severance tax. They intentionally ignore the impact fee and corporate income tax on drillers in PA that together adds up to about the same rate of taxation as a severance tax in states like Texas and Louisiana. For the second year running Wolf has proposed a severance tax–this time RAISING it to a supposed rate of 6.5%. Yes, the new tax would allow drillers to deduct whatever impact fees they would still have to pay. The state’s Independent Fiscal Office (IFO) has run the numbers and compared Wolf’s proposal to other states. You know what they found? Wolf’s proposed severance tax would have an effective rate of 8.5%, not 6.5%. It would be the highest such severance tax in the country! Some 54% higher than the effective severance tax rate in either Texas or Louisiana. So tell us, how many drillers will stick around PA and continue to drill with a tax like that? Can you say “ghost town”?…

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