CapitolBldgCall your state Senator NOW and tell them to vote NO on H.B. 542

URGENT CALL TO ACTION!

The state Senate is about to vote on a tax code bill that will increase consumer taxes on utilities, including electric, natural gas and telephone.  This tax package represents a $600 million increase in new and increased taxes and has the potential to cost your members thousands, if not millions, of dollars in operating costs.

Call your state Senator NOW and tell them to vote NO on H.B. 542.

With respect to increasing the gross receipts tax on electric utilities and re-instating it on natural gas utilities, our members have reported this tax will cost them significantly, regardless of size. A major industrial manufacturer in western PA estimates the combined cost increases from such taxes will be more than $3 million per year. Another member company in eastern Pennsylvania has estimated its cost of doing business in Pennsylvania will increase by as much as $1 million per year at a major manufacturing facility; other companies involved in heavy industry and energy-intensive manufacturing have estimated cost increases in the high six figures. These costs will reduce our member companies’ ability to compete in the global economy and re-invest in the state, and will result in higher prices to consumers and end users of their products. Higher taxes on energy will undo one of the state’s biggest competitive advantages, which is affordable and abundant energy.

Other tax proposals as part of the package include a higher tax on telecommunications and certain online transactions, as well as an additional tax on the natural gas industry. Should this severance tax proposal be enacted, natural gas will be taxed, in essence, four times: prior to drilling and on an annual basis with the impact fee; during production with the severance tax; at consumption with the gross receipts; and finally, every year with business and income taxes on any company involved in drilling, moving, or using natural gas.

These costs will reduce our member companies’ ability to compete in the global economy and re-invest in the state, and will result in higher prices to consumers and end users of their products. Higher taxes on energy will undo one of the state’s biggest competitive advantages, which is affordable and abundant energy.

Legislators should be focused on policies to help grow the state’s economy. Pennsylvania businesses can’t afford the massive tax increases represented in H.B. 542.

Call your Senator NOW and urge them to OPPOSE this harmful revenue package.