State Senator Gene Yaw recently became the latest Pennsylvania lawmaker to join Speaker of the House Mike Turzai’s opposition to Gov. Tom Wolf’s proposed 5 percent severance tax on Marcellus Shale drillers.
Turzai told the Pennsylvania Business Daily last week that the measure was a “job killer.”
“I do not support Gov. Wolf’s proposed severance tax,” Yaw said in an interview with the Pennsylvania Business Daily. “The tax is based on average production and production is currently down so it makes no sense to tax it at this point.”
Wolf estimates the tax would produce $1 billion in revenues, but Yaw argues that is not going to happen, based on current production.
“The tax would have to be 20 percent [based on current production levels] to produce a billion dollars,” Yaw said.
Yaw represents five counties, four of them in the Marcellus Shale region.