The Independent Oil and Gas Association of Pennsylvania (IOGA) released the following statement today in response to the Governor of Pennsylvania’s proposal in his 2009-2010 budget address to impose a severance tax on the oil and gas industry.
“The Pennsylvania Economy League reported in an October 2008 study that over 26,500 Pennsylvanians owe their jobs to the Commonwealth’s traditional oil and gas industry. Nearly $1 billion are paid to these employees and for each of these dollars, $1.88 in additional spending is generated. $842 million in proprietors’ income for small business and self-employment are also generated. Rents, royalties and dividends contribute another $1.9 billion in investor and property owner income.