A Penn State study concluded that the Marcellus Shale industry is expected to create 212,000 new jobs by 2020. The Marcellus Shale Coalition announced the study’s findings at a press event in the Capitol Rotunda this week. Those jobs are on top of thousands already being generated in the state. Additionally, over the next 18 months, drilling activity is slated to create more than $1.8 billion in state and local tax revenues.
The study also noted that for every $1 invested in the state by Marcellus Shale producers, $1.90 of total economic output is generated as a result.
Despite the clear benefits to the Commonwealth of the industry, if some state lawmakers have their way, Pennsylvania would have the highest severance tax rate in the nation among comparable states. Many other states that have severance taxes in place have also offered tax breaks, delayed implementation or discounts in areas, like the Marcellus Shale formation, that are difficult to drill.
The PA Chamber opposes the severance tax proposal under consideration in the state House.
“It’s appropriate to debate the severance tax issue,” PA Chamber Vice President Gene Barr said. “But the punitive rate proposed in House Bill 325 is likely to have a chilling effect on the industry’s development. A hostile business climate has already shut down development of the Marellus Shale in other states. Pennsylvania cannot afford to crush an industry that promises thousands of family sustaining jobs while delivering cleaner burning Pennsylvania fuel.”
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House Insurance Committee to examine federal health-care law
On Thursday, May 27, the House Insurance Committee will hold a public roundtable discussion on the new federal health-care reform law. James Gelfand, director of health policy for the U.S. Chamber of Commerce, will be among those testifying before state lawmakers. Others testifying include officials from the Pennsyvlania Insurance Department, Pennsylvania Association of Health Underwriters, America’s Health Insurance Plans and National Conference of State Legislatures.
The PA Chamber has prepared an issue brief explaining key provisions of the new law, its impact on employers and a timeline for implementation. The document is available here.
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