I believe that we need to move toward renewable energy sources for the long-term benefit to our society. However, as a society, we are not yet in a position to break our dependence on fossil fuels. This is why I strongly support a severance tax on Marcellus Shale gas drillers.
Pennsylvania is the only energy-producing state that has not enacted a meaningful severance tax on the extraction of shale for the production of natural gas. A severance tax would bring in continuous annual revenue that would allow us to address the priorities of the residents of Pennsylvania and build a stronger, more sustainable future for all of us.
The Delaware Loophole is a tax-avoidance trick used by large corporations that do business in Pennsylvania but want to avoid paying taxes in Pennsylvania. This is how it works: Large corporations incorporate in Delaware, claim all of their profits in Delaware and then avoid paying taxes here. This practice impacts our state budget and forces small businesses that operate here in Pennsylvania to pay higher taxes so the big guys can get a free ride. Pennsylvania should join other states that have done away with this loophole by implementing combined reporting.