Sen. Yaw Skeptical of Governor’s Severance Tax Proposal

HARRISBURG – Responding to Governor Tom Wolf’s 5% severance tax proposal on natural gas development in Pennsylvania, state Senator Gene Yaw (R-23) noted that now is not the time to implement additional taxes on an industry dealing with historically low gas prices.

“It’s absurd to think development will increase to the point of generating $1 billion by 2017 when companies are already slowing down development without a severance tax,” Yaw said.  “This same proposal was rejected under the Rendell Administration during much better economic times.  Does anyone in the Administration realize there is an oversupply of natural gas in the world market?”

“Governor Wolf opines that this (severance tax) is a ‘commonsense’ way to fund education.  What is the logic behind more taxes on an industry that is at its lowest point in several years?  Moreover, according to ‘Education Week’, Pennsylvania ranks very high, number eight, in funding and accomplishments in public education among all 50 states.  Commonsense?

Senator Yaw serves as Chairman of the Senate Environmental Resources and Energy Committee.



Adam Pankake (717) 787-3280