SD-26: McGarrigle Announces Support for Severance Tax
GOP nominee Tom McGarrigle sought to illustrate his policy (and moderate) bona fides by calling for a 4% severance tax on natural gas drilling in an op-ed for the Delaware County Daily Times.
“This was a summer of missed opportunity in Harrisburg,” McGarrigle wrote. “That missed opportunity – the chance to impose a severance tax on corporations extracting natural gas from the Marcellus Shale – will hurt homeowners in the form of higher property taxes and Pennsylvania students in the form of less money in our classrooms.”
McGarrigle acknowledged that the concept of a severance tax was “taboo among Republicans in the Legislature.” He asserted that the revenue generated would go to funding schools, which would in turn reduce property taxes.
“We have a booming natural gas industry that is making billions of dollars annually,” the Delaware County Council Chairman explained. “Meanwhile, Pennsylvania’s fee on Marcellus Shale natural-gas wells is the lowest among 11 states. The severance tax of 4 percent that I have proposed will put Pennsylvania in the middle of the pack compared to other states. Natural gas companies would pay their fair share, and it would not hinder the future development of the industry.”
McGarrigle is currently running against Democratic nominee John Kane, the head of Plumbers Local 690.