Labor Leaders, Non-Profit Coalition Support Adoption Of Equitable Severance Tax

Saying it is necessary for to preserve the environment and to ensure sustainable future budgets, labor leaders joined today with leaders from the Southeastern Pennsylvania Budget Coalition and the Better Choices for Pennsylvania Coalition to call for passage of an equitable severance tax by the October 1st deadline.
"The natural resources of the Marcellus Shale belong to the people of Pennsylvania and over the next few days our legislature must pass an equitable severance tax that sets a reasonable tax rate, limits unnecessary exemptions and loopholes, and encourages the hiring of Pennsylvania workers" said Rick Bloomingdale, President of the Pennsylvania AFL-CIO.
The state budget passed in July includes a commitment to vote on a severance tax on removal of natural gas from the Marcellus Shale reserve in Pennsylvania by October 1st. The General Assembly is counting on $70 million in revenue from a Marcellus Shale tax.
"If the legislature does not pass a bill by the end of this session they will have to make a third round of budget cuts this year," said Kathy Jellison said, President of SEIU Local 668. "A fair tax is necessary to protect the environment, to compensate communities impacted by industry activity and to prevent additional cuts to early childhood education, libraries, state parks, services for seniors and care for people with disabilities."
Pennsylvania has been hit hard by the economic downturn. Since 2008 there have been $3 billion dollars in budget cuts impacting public safety, consumer protections and essential services across the commonwealth.
"Women Against Abuse was forced to deny 4,671 requests for shelter in 2009," said Molly Callahan, Legal Center Director for Women Against Abuse. "This is nearly triple the number of requests denied in 2008."
An equitable severance tax in Pennsylvania will generate significant revenue that will grow over time as new wells come into production. The severance tax is an important long term source of state revenue to support core services such as education, health care, early childhood education and it is necessary to pay for the environmental and infrastructure costs associated with increased drilling.
"Lawmakers must to do the right thing when developing this proposal and pass a strong natural gas severance tax – not one rife with tax breaks for industry," said Wendell Young, IV President of UFCW Local 1776.
For more information, visit the Clear Choices Coalition website.