PA. Legislature's Delay in Enacting Gas Extraction Fee/Tax Has Cost PA. $301 million so far [View all]

[JPZenger]

Three years ago, the PA. legislature made a deal with Governor Rendell to enact a tax on natural gas extraction. Remember that PA. is the only state with a signficant natural gas industry that doesn't charge an extraction tax.

We are still waiting. And waiting. A think tank has calculated that $301 million in revenues have been lost so far because of the delay. They have set up a counter at the link.

http://www.dailykos.com/story/2012/02/01/1060823/-Pa-Loses-$300-Million-to-Gas-Drilling-Tax-Impasse?via=search

Even when Corbett endorsed a fee, he didn't want any of the money going to the state or public schools, and proposed a fee equal to only 1% of revenues. Most states have a much higher tax, such as 5%.

In his inauguration speech, Corbett actually said he wanted to model Pennsylvania after Texas. (I swear I am not making that up). Even Texas has a gas extraction tax (I believe it is about 5%).