Kasich Praised in Colorado For Oil & Gas Tax Proposal
From The Gazette in Colorado Springs:
Ohio has a relatively low severance tax on oil and gas. The Kasich plan would raise the tax to about 2.7 percent of the market value of oil or gas — an increase, but not enough to stifle oil and gas production. That’s because the levy would be comparable to taxes in seven competing states and lower than severance taxes in most states.
Here’s the cool part. Kasich wants proceeds of the tax revenues to benefit residents of Ohio directly, not through growth of state government. All proceeds would go into a fund that could be used only for lowering all personal income tax rates dollar for dollar.
The Journal says the Kasich plan could raise upwards of $547 million annually — enough to pay for a 5 percent across-the-board tax cut for each of Ohio’s nine tax brackets.
That means in a single year, Ohio residents would have $547 million more to spend on goods and services. The spending would help business owners employ more people and would generate more sales tax revenues for local governments. It would be a quick and easy boost to the economy of Ohio in return for allowing oil and gas producers to provide energy our country needs.