Gov. John Kasich says he will get his way on an increase in taxes on the oil and gas industry and on a cut in Ohio income taxes. Kasich was in Akron today to sign a bill establishing new regulations on the oil and gas drilling industry. What is not part of the new law is a hike in what’s called a “severance tax” that drillers pay on each barrel of oil. Kasich proposed a hike – with a corresponding income tax cut – in a 3,000+ page budget bill earlier this spring. His fellow GOP lawmakers stripped it out. But he vows it will be back.
Oil and gas companies have so far fought the tax hike, saying it will stifle a burgeoning industry in Ohio.