Friday, October 22, 2010

Pennsylvania's Marcellus Shale tax issue unresolved - Yahoo! News

Pennsylvania's Marcellus Shale tax issue unresolved - Yahoo! NewsAside from federal taxes, Pennsylvanians pay sales taxes, income taxes, municipal taxes, property taxes, head taxes, vehicle taxes, state liquor store taxes, cell phone taxes and cable television taxes -- to name just a few. Now, Gov. Ed Rendell and state Democrats are trying to push a new energy tax onto a new Pennsylvania industry at a time when many Pennsylvanians are unemployed.

Some Republicans also support taxing the energy industry, which is buying lease contracts for natural gas extraction from the Marcellus Shale deposits, an expanse of porous rock that spans several states. But Republicans have proposed a lower tax rate.

Before a compromise agreement could be worked out, Pennsylvania Republicans were blindsided by the lame-duck Gov. Rendell, who announced in a press release that bipartisan talks about taxing the energy companies drilling for natural gas in Pennsylvania's were dead. The governor said that "...the refusal of Senate and House Republicans to negotiate in good faith on terms of a promised natural gas severance tax has killed the effort to enact it into law this year."

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