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DR. TRACY MILLER: WHY PENNSYLVANIA SHOULD NOT ENACT A SEVERANCE TAX ON NATURAL GAS |
Some argue that having only an impact fee with no severance tax on gas in this state offsets other state taxes so that Pennsylvania can effectively compete with other states in attracting energy companies. Many of those who oppose the proposed tax on gas extraction are not opposed in principle to taxing resource extraction, but are rather concerned about how this tax will affect the total tax burden and the size of the state government, which they view as too large. Proponents of limiting the size of state government oppose a severance tax because the revenue will likely be used to support more state government spending rather than opening the door for reducing other taxes.
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