Share in the Shale

Schwartz proposes 5 percent tax.

Add to Briefcase
Sept. 5, 2013, 7:18 a.m.

Rep. Allyson Schwartz (D) pro­posed en­act­ing a 5% “sev­er­ance tax on nat­ur­al gas pro­duc­tion to gen­er­ate as much as” $13.2 bil­lionover a dec­ade “for pub­lic edu­ca­tion, trans­port­a­tion, and prop­erty-tax re­lief.” Schwartz, dur­ing a con­fer­ence call with re­port­ers: “All Pennsylvani­ans de­serve to share in the shale wealth.” She char­ac­ter­ized a 5% tax as a “mod­er­ate, reas­on­able” rate.

Gov. Tom Corbett (R) “has fought ef­forts to im­pose a sev­er­ance tax, main­tain­ing that it would hamper de­vel­op­ment of a rap­idly grow­ing gas-drilling in­dustry.” Corbett en­ergy ad­viser Patrick Hende­r­son: “Gov. Corbett is stand­ing with the middle class. … Pennsylvani­ans want more jobs and few­er taxes.” (Phil­adelphia In­quirer)

Then-Gov. Ed Rendell (D) “also at­temp­ted to cre­ate an ex­trac­tion tax” but “failed to get the ne­ces­sary sup­port from the le­gis­lature. If she be­comes gov­ernor, Schwartz will likely have to deal with many of the same obstacles he faced.” (Polit­ic­

More Schwartz: “There are real reas­ons in re­quir­ing the en­ergy com­pan­ies to pay a very mod­est tax sim­il­ar to what they’re pay­ing in every oth­er state where they’re do­ing drilling.” (Har­ris­burg Pat­ri­ot-News)

Corbett cam­paign man­ager Mike Bar­ley, in a re­lease: “Con­gress­wo­man Allyson Schwartz’s pro­pos­al to drastic­ally in­crease taxes on the shale gas in­dustry will cost Pennsylvani­ans good-pay­ing, middle-class jobs by for­cing the in­dustry to re­lo­cate to more busi­ness and en­ergy friendly states.” (Har­ris­burg Pat­ri­ot News)
— Ju­lie So­bel


Welcome to National Journal!

You are currently accessing National Journal from IP access. Please login to access this feature. If you have any questions, please contact your Dedicated Advisor.