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Gov. John Kasich

Gov. Kasich defends tax increase on oil and gas drillers

WILMINGTON, Ohio — Ohio’s governor is making his case for a proposed tax increase on the oil and gas industry, saying it won’t deter production in the state.

Gov. John Kasich (KAY’-sik) has called for a fixed rate on crude oil and natural gas of 6.5 percent at the wellhead, and a lower rate of 4.5 percent for natural gas and natural gas liquids sold downstream. He discussed the proposal Tuesday during his State of the State speech. Proceeds from the increase would help reduce the state income tax.

The governor’s fellow Republicans who control the Legislature have repeatedly scrapped Kasich’s past attempts to raise the tax, amid pushback from anti-tax groups and the industry.

Kasich said he was disappointed in detractors who say the tax increase would kill the industry, calling such talk “a big fat joke.”

In related news, Ohio could see an increase in severance tax, thanks to the Gov.

This article was from The Associated Press and was legally licensed through the NewsCred publisher network.

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