Gov. Wolf has proposed a severance tax on the extraction of natural gas in Pennsylvania to provide funding for public schools. Lawmakers in both parties have introduced severance tax bills every year since 2009, and every year the gas drillers have successfully fought the tax, spending $46.8 million on lobbying since 2007. Much of the industry’s lobbying money has gone into manufacturing a narrative, built on a foundation of myths, about the economic benefits of drilling and the fragility of the industry.
Gov. Wolf has proposed a severance tax on the extraction of natural gas in Pennsylvania to provide funding for public schools. Lawmakers in both parties have introduced severance tax bills every year since 2009, and every year the gas drillers have successfully fought the tax, spending $46.8 million on lobbying since 2007. Much of the industry’s lobbying money has gone into manufacturing a narrative, built on a foundation of myths, about the economic benefits of drilling and the fragility of the industry.
The Pennsylvania Budget and Policy Center has compiled five facts, supported by research and independent data, which tell the real story. We are posting a fact a day on this blog. Today, we give you:
Fact 3. Most of the gas produced in Pennsylvania is exported to other states so, according to the Energy Information Agency, residents of those states would pay 90 percent of a Pennsylvania severance tax. Pennsylvania consumers already pay severance taxes to other states that ship gas here. Because severance taxes levied in other states are already figured into the price of gas, any increase from a Pennsylvania tax would be very small – less than 2 percent. Natural gas prices have fallen in Pennsylvania by 28 percent since 2008.