Ohio Gov, Kasich's "Frack Tax" Opposed by GOP Lawmakers (From Newsmax)

Ohio Gov. Kasich's 'Frack Tax' Opposed by GOP Lawmakers



Friday, 16 Mar 2012 05:14 AM

By Sandy Fitzgerald

 
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Ohio Republican Gov. John Kasich’s plan to cut the state’s income taxes by taxing shale drilling may face resistance from his own party. The “frack tax” revenue, which would offset the costs of an across-the-board income tax cut, is a key element of Kasich’s new policy proposals, reports the Columbus Dispatch.
 
The income tax cuts could begin at 1.6 percent in 2014 and grow to a 5 percent cut by 2017 —bringing in as much as $500 million yearly.
 
“I’m not sure the [Republican] caucus in the House is receptive to the recommendations on oil and gas that the governor has made,” said Rep. Peter Beck, a Republican who chairs the House Ways and Means Committee, which is considering the governor’s tax proposals.
 
Kasich’s plan calls for taxing crude oil and liquid natural gas from fracked wells, beginning at 1.5 percent of gross receipts and going up to 4 percent, all depending on when each drilling company recoups its start-up costs. Dry gas would also fall under Kasich’s tax plan, and would be charged at 1 percent.
 
However, Beck said the tax targets an industry that’s still developing, and Republican Sen. Tim Schaffer, who heads the Senate Ways and Means Committee, said while he’s “all about tax cuts,” he and the committee are not in favor of tax increases like the frack tax.
 
The new tax, if approved, could drive drilling companies away from Ohio, warns state Petroleum Council President Terry Fleming.
 
“Recent industry investments in Ohio are based on a tax and regulatory structure that was just put in place in 2010,” said Fleming. “Any change to that structure could drive away investment from the state, and send local jobs with them. It could also eliminate critical state revenues that come from current taxes on all gases and liquids extracted from the ground in the state.”
 
Kasich said he knows his plan might be blocked by politics, but “every Ohioan ought to benefit from this prosperity [from shale drilling], this wealth.”
 
Senate President Tom Niehaus, a Republican, said Ohio should get fair compensation for its natural resources, but said the state shouldn’t be anti-competitive with other states’ tax rates and discourage investment.
 
However, the Kasich administration said the proposed taxes are lower than rates charged in Michigan, Texas, North Dakota, and West Virginia.
 
Meanwhile, the state’s Democrats favor increasing taxes on shale drilling, but say an income-tax cut should not happen while schools and local governments are dealing with budget cuts.
 



 

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Replies to This Discussion

Permalink Reply by Elnathan Cory on March 16, 2012 at 8:29am

You Socialists must be proud of Kasich finally coming out of the closet!

Permalink Reply by Elnathan Cory on March 16, 2012 at 8:33am

The new tax, if approved, could drive drilling companies away from Ohio, warns state Petroleum Council President Terry Fleming

Permalink Reply by Elnathan Cory on March 16, 2012 at 10:08am

Please don't compare lobbyists with whores! You are insulting the oldest profession! I have more respect for whores than lobbyists!

Permalink Reply by Nelson E. Yost on March 16, 2012 at 12:21pm

Kinda the opposite to the govt using tax dollars to promote "green energy" from corn/grain alcohol to solar/wind.

Permalink Reply by Private KeepOut on March 16, 2012 at 12:56pm

Kasich said he knows his plan might be blocked by politics, but “every Ohioan ought to benefit from this prosperity [from shale drilling], this wealth.”



Excuse me, but every Ohioain should've invested in land like I did years ago! It's my land and I signed an agreement to go into business/partnered with the Oil and Gas Company! Not the state of Ohio and it's Occupants!

This B.S just burns my BUTT!!!!

Permalink Reply by Graham on March 16, 2012 at 8:44pm

AGREED!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

Permalink Reply by Billy Park Whyde on March 16, 2012 at 8:48pm

Amen

Permalink Reply by Chartist on March 16, 2012 at 9:55pm

You're absolutely right Shale Gale.....Everyone votes their wallets....

Permalink Reply by Private KeepOut on March 17, 2012 at 12:43pm

Shale Gale...why do you assume everyone on here is low income or uneducated?  I'm not complaining about severance tax...I'm perfectly happy with my lease and the O&G Co. that I signed with. Also, If I had a dime for every dollar I paid in taxes over the years I'm pretty sure I'd be part of the 1%. The issue I have is with Wealth Distribution...I guess this is one of the reasons I did not vote for Obummer!

Glenn....I love your novel idea! Put people back to work and let them create their own wealth!

Permalink Reply by Private KeepOut on March 18, 2012 at 10:34am

It makes no sense to keep kickin a dead horse....you must be right shale gale...lol

Permalink Reply by Private KeepOut on March 18, 2012 at 7:53pm

REALLY??????? You didn't honestly believe me did you? We need a few emoticons on this forum like a roll my eyes little guy or thumbs down little guy. Oh, and by the way it's LMAO.....you must have a little dyslexia in that oil and gas family of yours. ROFLMAO!!!!

Permalink Reply by Private KeepOut on March 18, 2012 at 8:17pm

Seems to me you can dish it out, but obviously can't take it!

Sore Loser!!! ROFLMAO!!!!

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