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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2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on March 18, 2012 at 1:08pm

Thanks TP !

Permalink Reply by Dan on March 16, 2012 at 2:42pm

It's hard to know where to stand when your gettin it from both sides and it looks as if the majority will rally in making the whole State a welfare state.  It seems the right can be even more effieciant with their business experiance to shove welfare and subsidies on us.  This guy needs to spend more time with his buddy in Wisconson.  The whole country is looking at Ohio as the probable deciding vote in the next election and we are here.  Ambarasing.

Permalink Reply by Chartist on March 16, 2012 at 2:25pm

Sounds good to me....I think Ohio's income tax is excessive....Keep the good work Gov. Kasich.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on March 16, 2012 at 2:57pm

Instead of new and more taxes , how about this novel idea: Cut all waste and mismanagement from gov't. budgets and enjoy the increased revenue from all the newly gainfully employed citizens paying wage taxes? I bet if gov't. was run like an honest Company we would see a reduction in wage taxes and the elimination of alot of hidden taxes. More money in your pocket equates to more money to spend that creates more employment. WE are the job creators , NOT THE GOV'T.!

Permalink Reply by Chartist on March 16, 2012 at 2:59pm

Glenn....I highly doubt you'll create even one job let alone compete with the state of Ohio government in terms of job creation....

 

 

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on March 16, 2012 at 3:32pm

What.................????????

Permalink Reply by Chartist on March 17, 2012 at 12:18am

Yeah,,,,It's the same drilling crew going from property to property....And these guys already had jobs in Texas or Oklahoma.....When Glenn pays his taxes, some of which goes to Ohio, some of that money will be used in the bureacracy that is Columbus...Those are permanent jobs.

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on March 17, 2012 at 6:33am

And these out of state crews are spending money wherever they go and stimulating the economy there. They have to eat and have a roof over their heads and have days off to spend $$$ and buy fuel to operate don't they? And you can bet the landowners are stimulating their economies too through their spending. Lots and lots of spinoff benefits related to all of this and you can't seem to see it. I am wary of your negativity. It appears you have an agenda that is unfriendly to our regions new found prosperity........?

Permalink Reply by Billy Park Whyde on March 18, 2012 at 4:32am

Kasich announced his plan to tax the oil companies and at just about the same time Shell Oil (that has leases i Oho and plans on drilling here) announces they will build their cracker plant in Pa, instead of Ohio. Looks like he taxed business out of Ohio!

  Let me ask this question, why is it anything new comes along a cry for taxing it comes to play?  Using the term fleecing is somewhat a sensationalized term to be using. Where were we headed without this oil and gas industry might I ask? Were we headed down the tube, well it rather looks like our politicians   have not done a very good job if they always want to tax others for their mistakes!

  Where would the budget be without the oil and gas might I ask? Ohio runs on empty we created a lottery to help Ohio, looks like a dismal failure, we create non smoking casinos to help Ohio another failure. We spend millions on health care but our legislature fails to restrict price gouging by the so called non profit health care industry. We had $190,000,000 to help Ohio's unemployed but watched the health care industry swallow it up instead of helping people get training for better jobs. Ohio spends millions of dollars a year to enforce a smoking ban that has not been a cost saver to the public but has hurt private business owners, private clubs such as the VFW, American Legion and others despite the propaganda tax paid for studies that the Ohio Department of Health promotes to get for funding to increase it's bureaucratic non sense.

Why not cut government? Why do we need a Ohio Highway Patrol, a Ohio Department of Transportation and a Commercial Vehicle Enforcement agency to make life miserable for truck drivers and the high cost of bureaucratic redundancy.

 I am sure you could think of more areas Ohio could improve on without feeding the fat cats, our politicians.

Permalink Reply by Private KeepOut on March 18, 2012 at 1:01pm

I don't know Billy, maybe shale gale can answer those ? He/She seems to have all the answers. I say shale gale for POTUS!!! LMAO!

Permalink Reply by Billy Park Whyde on March 24, 2012 at 3:28am

Dose Pa have a ACT tax also?

Permalink Reply by Gary on March 16, 2012 at 4:18pm

OK drillers pull up your rigs and come over to Pa.  Thanks Gov. Corbett, keep PA tax friendly for all business

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