PA Chamber President and CEO Gene Barr recently issued a statement in response to the Wolf administration’s calls for a severance tax on the natural gas industry to fund the ‘Restore PA’ initiative.
Restore PA would invest $4.5 billion in development projects related to infrastructure, technology, storm preparedness, and other areas.
“While the PA Chamber agrees infrastructure development should be a priority, punitive energy taxes are not the best means to achieve this goal,” Barr said. “One of Pennsylvania’s greatest advantages is our affordable and accessible energy supply. We are at risk of losing this competitive edge if state elected officials continue to call for higher energy taxes as a way to spend more government money.”
Barr also said that the natural gas industry already pays high corporate tax rates and the impact fee, which has generated approximately $1.7 billion since it was enacted.
“The administration has repeatedly touted the projects in the ‘Restore PA’ initiative as necessary for the public good,” Barr said. “As such, it shouldn’t fall on the back of one industry to pay for them. We encourage policymakers to pursue pro-growth economic policies that will leverage our assets into greater opportunities for all Pennsylvanians. The Forge the Future economic analysis estimates this could mean more than 100,000 new jobs and billions in new state tax revenue as our energy and manufacturing sectors grow.”