Home / Exclusives / Severance Tax: Compromise is now an option

Severance Tax: Compromise is now an option

On Monday, Pennsylvania Governor Tom Wolf shared that he would be open to discussing potential compromises regarding the severance tax he has proposed.

While speaking in Western Pennsylvania, Wolf made the following comment regarding his stance on the state’s budget and severance tax:

I want a better Pennsylvania. If I’m convinced we can have a better Pennsylvania with something better than what I’ve proposed, then I’m all ears.

As of yet, Wolf and the GOP-powered legislature have not come to an agreement regarding the state’s budget, which was supposed to be completed on June 30th.  As reported by State Impact Pennsylvania, “A key element of the impasse is Wolf’s insistence on passing a severance tax on natural gas. Republicans have so far resisted the governor’s call. Wolf says he wants to pass the tax to pay for education and to lower local property taxes.”

The governor has said he will stand by his plan to fund education, which is something he believes is not a matter to brush off and ignore, with the gas tax.  However, there are those who are not aboard Wolf’s gas tax train.  Senate Republican Majority Leader Jake Corman said he is not dismissing the proposed severance tax, but he is not going for Governor Wolf’s plan either:

We cannot take action that would damage this valuable vehicle for economic development and job creation … At the same time, if we could tailor a tax that may also have provisions that would allow the industry to continue to develop and maintain job growth, then it might be something we consider.

The state’s budget plan has been a hot topic for months now, and only time will tell whether or not Governor Wolf’s proposed severance tax is going to make the cut.

To read State Impact Pennsylvania’s full article regarding Wolf’s proposed severance tax and the GOP’s stance on the issue, click here.

Leave a Reply

Your email address will not be published. Required fields are marked *

*