More Evidence PA House Repubs Beginning to Cave on Severance Tax

We continue to read articles about the ongoing effort by Pennsylvania Democrats and some squishy Republicans to slap a severance tax on top of an existing impact tax on natural gas drilling in the Keystone State. As we pointed out yesterday, Philadelphia teacher’s unions are in the forefront of a plan to grab money from drillers and funnel it into the pockets of their members (see Drumbeat Continues: Tax PA Shale & Give Money to Teacher’s Unions). The PA Senate cooked up a horrible plan to implement a “modest” severance tax, along with a gross receipts tax that will tax natural gas again, at the consumer level (see Traitorous PA Senate Republicans Pass Severance Tax Bill). The PA House has stood firm, thus far, against the plan. But then we read PA House Majority Leader Dave Reed is beginning to cave (see PA House Beginning to Cave on Severance Tax? Maybe…). We’re now reading about other members, people we long thought solid, like Rep. Garth Everett (Lycoming County) who now says “The new tax on drilling remains an option.” REALLY disappointing, Rep. Everett. The way the conversation is now going, the House doesn’t have the stomach to slap a gross receipts tax (GRT) on natural gas, phones and electric–but they are A.OK with a severance tax. Since the GRT, under the traitorous Senate Republican plan, is supposed to provide around $400 million in revenue and the severance tax $100 million, what happens without the GRT? Will House Republicans ratchet up the severance tax even more? It’s rapidly turning into a mess. Below is the latest chatter we’ve found, along with a new letter from the Marcellus Shale Coalition to the House leadership warning of the precarious situation a new severance tax will create for future job and economic growth in PA…

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