Ten Reasons How New Energy Taxes Would “Squander a Tremendous Opportunity”

What do labor unions, local governments, small businesses, manufacturers and consumers have in common? They’re all benefiting from the generational opportunity of responsible shale development in Pennsylvania. What’s more, they also recognize that new energy taxes would jeopardize these shared gains and stifle job growth at a time when jobs are most needed.

Here are several of the many reasons new energy taxes would create “adverse consequences for Pennsylvania” job creators and our economy:

  1. FEWER JOBS: Additional and new energy taxes would “stifle energy production and the jobs that go with it.” (Philadelphia Inquirer, 12/16/14)
  2. REDUCE CLEAN ENERGY PRODUCTION: New energy taxes “would reduce investment, slow production and hurt the economy.” (Pittsburgh Tribune-Review, 12/16/14)
  3. HARM SMALL BUSINESSES: “While the gas industry can move elsewhere to locations where operators can make more money, the small ancillary businesses cannot. ‘They’re the groups and companies that lose deeply.’” (Williamsport Sun-Gazette, 12/18/14)
  1. LESS ECONOMIC GROWTH: “You’ll see fewer rigs, fewer jobs, fewer opportunities, and that would squander a tremendous generational opportunity for the commonwealth.” (Pittsburgh Tribune-Review, 12/16/14)
  2. REDUCE  INVESTMENT, LOCAL JOBS: “The impact fee enacted in 2012 is working … any severance tax would lower investment by the industry in the state, and result in reduced job creation.” (Observer-Reporter, 12/16/14)
  3. LOST LOCAL REVENUE: “The gas impact fees will be discontinued if there is a gas severance tax. This money has been for the most part wisely used by municipalities and counties in our region for important projects, improvements and troubleshooting. Infrastructure work, capital purchases, street improvements, housing developments and other items otherwise without adequate funding have been made possible by the fees.” (Williamsport Sun-Gazette editorial, 12/18/14)
  4. RISK MANUFACTURING JOBS: “The state could realize far greater revenue by allowing gas companies to continue to invest in the Marcellus play here, create more jobs and contribute further to the nascent manufacturing renaissance in the state. “If you put a (new energy) tax in play, you’re going to see a lot less investment.” (Observer-Reporter, 12/16/14)
  5. ADVERSE CONSEQUENCES: New energy taxes “could have adverse consequences for Pennsylvania.” (Pittsburgh Tribune-Review editorial, 12/16/14)
  6. RISK CONSUMER, LOCAL BENEFITS: “Natural gas has added $34.7 billion to the state’s economy and saved school districts $45.5 million in annual energy costs. … The impact fee has delivered more than $630 million to communities since 2012, including $234 million in 2014. The industry also pays $2.1 billion in state and local taxes.” (Observer-Reporter, 12/16/14)
  7. MISSED OPPORTUNITIES: “A severance tax on gas production would cost Pennsylvania jobs and lead to missed opportunities for economic development.” (Pittsburgh Business Times, 12/16/14)

And here’s a bonus – and critically important – reason:

NOT A SOLUTION: “A severance tax will not fix the fiscal problem.” (Williamsport Sun-Gazette, 12/18/14)

Stand with working families and small businesses across the Commonwealth and take action today.