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Don't tax in downturn

The Feb. 5 editorial (“Severance Tax Compromise Deserves Wolf’s Attention”) is flatly wrong in its support for state Rep. Jim Christiana’s “reasonable” call for higher energy taxes that will undeniably jeopardize local jobs and consumer benefits.

The ongoing debate surrounding responsible natural gas development in the commonwealth is a classic example of a growing disconnect between political agendas and the facts. We believe Pennsylvanians — including your readers — deserve those facts.

By April of this year, Pennsylvania’s impact fee will have generated more than $1 billion in new revenues for counties across the state since 2012 — nearly $16.5 million has been distributed to Butler County and its communities — which Pennsylvania State Association of Township Supervisors has praised as “an enormous benefit for the entire commonwealth.”

However, other energy-producing states that rely on a severance tax are struggling with deep budget shortfalls as revenues spiral downward alongside commodity prices.

New taxes and efforts to marginalize an important sector of our economy — as well as the thousands of men and women who work across it — will only exacerbate our difficult financial challenges during what a recent AlixPartners study termed “one of the severest downturns in 30 years.”

It’s an unmistakable fact that every Pennsylvanian is realizing shale’s game-changing economic and environmental benefits. But we must be guided by the reality that there couldn’t be a worse time for a massive energy tax increase as the industry continues to weather a persistent slowdown. The focus should center, rather, on policies that encourage greater natural gas end-use so we can continue to realize shale’s opportunities for years to come.

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