Seitz said he sent the memo after listening to Kasich’s State of the State speech.
“What did he say? He said, ‘If you don’t like my plan, what’s your plan?’ So I was listening and here’s my plan,” Seitz said. “It’s intended to start a discussion.”
Seitz proposed keeping the two largest parts of Kasich’s tax package – his 23-percent income tax cut over two years, and his proposed half-cent increase in the state sales tax, from 5.75 percent to 6.25 percent.
Kasich’s proposed severance tax increase on fracking, Seitz argues, is too high and could hit drillers who are losing money. However, he said, the House-passed severance tax bill last session “was probably too generous in the opposite direction (particularly in allowing credit for CAT tax and ad valorem payments).”
Seitz said a happy medium must exist somewhere.
“I do not buy the argument that no increase can be considered due to falling oil prices,” Seitz wrote. “If properly designed, the tax will not take effect until after well costs are recouped, at which time prices may well have rebounded.”Read the rest of that article by clicking right here.
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