- Tom Wolf plans to invest $4.5 Bn for enhancing Pennsylvania’s infrastructure
- The governor seeks natural gas tax as a way to raise $4.5 Bn
- State Legislature is against imposing natural gas tax
In a recent turn of events, Tom Wolf, the governor of Pennsylvania, has reportedly proposed to levy tax on natural gas extraction to accumulate enough funds to support a plan to invest $4.5 Bn over the coming four years for augmenting state’s infrastructure.
Wolf noted that Pennsylvania is the only state in the nation that does not levy tax on extracting natural gas.
As per sources familiar with the knowledge of the matter, Wolf stated that he plans to spend the money on business development, storm preparedness, high-speed internet access, disaster recovery, energy infrastructure development, and transportation projects.
If reports are to be believed, the state legislature has constantly declined to impose this tax over the last few years.
For the record, Pennsylvania is the second largest gas manufacturing state after Texas. Pennsylvania reportedly manufactures around 18 billion cu ft per day from the Utica and Marcellus shale basins, which comprises for more than 20 percent of country’s total gas production.
However, Pennsylvania’s gas industry states that imposing the tax is not required since the state already levies impact fee per well.
As per market experts, the proposed tax would surge if the gas cost increases and would begin March 1, 2020. Tom Wolf was quoted stating that the state is wasting the opportunities to reinvest the funds generated from these resources for the betterment of the economy and to propel Pennsylvania forward.
David Spigelmyer, Marcellus Shale Coalition President, stated that Pennsylvania’s impact fee on natural gas raises hundreds of millions of dollars every year for valuable infrastructure program, and adding one more energy tax would cost consumers as well as hurt jobs.