Invalid story_id was passed.
Tobacco, Natural Gas Targeted in Pennsylvania Tax Package (Public News Service)
05/07/2010
HARRISBURG, Penn. - Consumers of some tobacco products and natural gas developers would face new taxes under a bill passed by a House committee in Harrisburg this week. House Bill 2435 would charge companies for extracting natural gas in the state, plus, cigar and smokeless tobacco retailers would have to collect a 30-percent tax from customers purchasing those products. The bill would also close a loophole that lets companies doing business here avoid paying some state taxes.
Kathy Jellison, president of Service Employees International Union (Local 668), supports the proposed new taxes.
"We have a lot of hard working folks in Pennsylvania, and our folks pay their fair share of taxes and this House bill will ensure that the big oil folks and the big tobacco and the big corporations do the same."
Jellison says Pennsylvania's business climate has been friendly to a fault, and taxpayers have been footing too much of the bill.
"More than 70 percent of the corporations don't pay any income tax in Pennsylvania, and if we could close that tax loophole, we'd get millions back and could certainly keep the services that we need for our citizens."
As Pennsylvania suffers economically with the rest of the country, Jellison says the state needs new revenue. Otherwise, some key services may not be available in the future, she adds.
"You call Area on Aging because your mother needs services and you're put on a waiting list because we don't have enough people to do the job."
It's estimated the new taxes from the measure could generate about $300 million annually. Opposition to the bill includes the gas industry, which says it will drive away drillers, and tobacco retailers who fear the new levy will chase some of their customers across state lines where taxes are lower.
Kathy Jellison, president of Service Employees International Union (Local 668), supports the proposed new taxes.
"We have a lot of hard working folks in Pennsylvania, and our folks pay their fair share of taxes and this House bill will ensure that the big oil folks and the big tobacco and the big corporations do the same."
Jellison says Pennsylvania's business climate has been friendly to a fault, and taxpayers have been footing too much of the bill.
"More than 70 percent of the corporations don't pay any income tax in Pennsylvania, and if we could close that tax loophole, we'd get millions back and could certainly keep the services that we need for our citizens."
As Pennsylvania suffers economically with the rest of the country, Jellison says the state needs new revenue. Otherwise, some key services may not be available in the future, she adds.
"You call Area on Aging because your mother needs services and you're put on a waiting list because we don't have enough people to do the job."
It's estimated the new taxes from the measure could generate about $300 million annually. Opposition to the bill includes the gas industry, which says it will drive away drillers, and tobacco retailers who fear the new levy will chase some of their customers across state lines where taxes are lower.
More Headlines
No headlines in this category