Once again Ohio Republicans are starting to lose their cool and are considering a dalliance with a high Utica Shale severance tax proposed by RINO Gov. John Kasich (who’s running for president, but then nobody knows since he’s at 0% in the polls). Perhaps state Republicans think by giving Kasich what he wants in a high severance tax it will enhance his presidential prospects with conservatives? (NOT!) Whatever the reason, Ohio’s left-leaning PBS outlet at Kent State is reporting legislators are meeting “behind closed doors” with members of the oil and gas industry to beg and plead for an increase in the severance tax… Continue reading
It appears Ohio Republicans have grown a backbone and are opposing the plan by Gov. John Kasich to raise the oil and gas severance tax in the state in order to transfer wealth from landowners and drillers (the ones who earn it) to everyone else (who don’t earn it). At a meeting yesterday of the Ohio Oil and Gas Association, Ohio State Treasurer Josh Mandel said he opposes the governor’s plan to raise the severance tax. Later in the day, Ohio House Speaker Bill Batchelder also piled on and predicted the tax hike will not pass in this year’s budget.
True to form, a Kasich spokesman said “big oil is a powerful lobby with very deep pockets,” implying Mandel, Batchelder and other Republicans are either scared, have been bought off, or both. Whatever happened to John Kasich, once a rising conservative star? That John is long gone…
As in previous years when Ohio’s RINO Gov. Kasich has proposed a super-high boost to the state’s severance tax, calm-headed Republicans (people from his own party!) have come to the rescue. Ohio House Republicans have removed Kasich’s boost in the severance tax rate from the budget. Meaning, it’s dead… Continue reading
Ohio Gov. John “severance tax” Kasich is Johnny One Note when it comes to his desire to tax the Utica Shale industry and transfer their hard-earned money away to other people who didn’t earn it. In January, Kasich announced he would obstinately include a nosebleed-high Utica Shale severance tax (6.5%) in his biennium budget–again (see OH Gov. Kasich Recycles Proposal to Increase Utica Severance Tax). If you calculate it out, Kasich’s proposed increase is 500% higher than what it is now. According to Joe Nichols, policy analyst at The Buckeye Institute’s Economic Research Center in Columbus, the increase in the Utica Shale tax is a jobs-killer in the Buckeye State. Nichols takes aim at this latest effort by Kasich to screw up the Utica Shale industry in Ohio… Continue reading
“Johnny could only sing one note / And the note he sang was this…” Ohio Gov. John “severance tax” Kasich is Johnny One Note when it comes to his desire to tax the Utica Shale industry and transfer their hard-earned money away to other people who didn’t earn it. Kasich announced he would obstinately include a nosebleed-high Utica Shale severance tax (6.5%) in his biennium budget–again. Kasich has been pining for an increase in Ohio’s severance tax for years (see our extensive list of Kasich severance tax stories here). OH legislators have already declared the proposal to increase the severance tax “dead on arrival.” Kasich offered up this explanation for his addle-headed insistence on including it again: “Some might be cynical and say why does he keep putting this severance tax in when he knows it’s not going to pass…I don’t believe this legislature is going to enact higher severance taxes, but the day will come when they will.” Poor Johnny One Note singing (with gusto) the only note he knows… Continue reading
Ohio Gov. John “foreigner hunter” Kasich announced yesterday he’s running for president, as we predicted he would back in May (see John “Foreigner Hunter” Kasich Ready to Announce Run for President). Kasich is, like Jeb Bush, Lindsey Graham, Chris Christie and perhaps a few others in the Republican presidential race, a RINO–a Republican in Name Only. He left the conservative (i.e. common sense) side of the party long ago and does not deserve your vote. He’s trying to slap a high tax on Utica Shale in Ohio and transfer the money it raises to those who didn’t earn it in the form of an income tax break. We’re all for income tax breaks–as long as they don’t come at the expense of a single industry or group of people (like drillers and landowners). We’ve long considered Kasich to be, well, a jerk. It seems we’re not the only ones. A Cleveland Plain Dealer article examines Kasich’s “jerk” image problem… Continue reading
Once upon a time Ohio Gov. John “foreigner hunter” Kasich (Republican) wanted to tax Utica Shale drillers 2.5%. But then he talked to some of his Democrat buddies and decided to hike it. After thinking it over, Kasich finally settled on 6.5%. When Kasich got resistance to his brilliant tax increase idea, he threatened the drilling industry by saying take my 6.5% or “someone else” may push for a ballot measure of 10% (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax). Kasich has been on the 6.5% bandwagon from some months now, and not giving in. One news account says he’s about to go down in defeat yet again, but another news account has him buoyant, like he’s about to get what he wants… Continue reading
Two days ago we told you about OH Gov. John Kasich’s threat against the oil and gas industry in Ohio: You accept my high 6.5% severance tax or else (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax). His comments were made last Friday. We spotted another article about that session with reporters which contains a bit more of the context of Kasich’s threatening language… Continue reading
It now appears Ohio Gov. John Kasich (RINO), wants to completely kill Utica Shale drilling. On Monday he released his latest budget and his severance tax proposal has gone from his previously preferred rate of 2.75% to an astonishing 6.5%–a 236% increase. Yes, you read that right–it’s not a typo. Over the past several years, Kasich has squabbled with his own Republican legislature over how much of (not if) an increase there should be. The legislature proposed 2.25% as a new severance tax rate, Kasich wanted 2.75%. Eventually the legislature proposed a compromise at 2.5% (see OH Repubs Sell Out on Severance Tax, Kasich Wants Even More!). Kasich dearly wanted that extra 0.25% and held out, losing the battle. There was no increase passed. Kasich, whom we refer to as “the foreigner hunter” for his jingoistic disdain for “foreign” oil and gas workers from exotic places like Texas and Oklahoma, has just upped the ante considerably with a proposed 6.5% severance tax. Did Ohio just become Colorado and is Kasich now smoking pot?… Continue reading
Apparently Ohio’s RINO Gov. John Kasich–he who calls skilled gas field workers from Texas and Oklahoma “foreigners” (although he loves the money and jobs provided by companies headquartered there)–hasn’t been “focusing” on the issue of soaking Utica drillers with high taxes and apparently that’s why it hasn’t yet happened. So Gov. Kasich will center himself, hum a mantra and focus really hard on screwing the Utica Shale industry in the coming year and that, he hopes, will do the trick to raise the severance tax rate in his state… Continue reading
As we predicted, Ohio Republicans caved and voted a high severance tax out of committee on Wednesday (see Bend Over Ohio – You’re About to Get a Frack Tax). The Republicans think it’s fine to steal money from one industry to give away to people who didn’t earn it. The Democrats are even worse. But here’s the funny thing. Ole’ Gov. John “foreigner hunter” Kasich isn’t satisfied with the Republican plan to raise the rate to 2.5%. He wants more (more more more!).
Since the Repubs have already bent over once, will they do it again for Kasich?… Continue reading
With apologies to the memory of the late, great Johnny Cash, to be sung to the tune of Folsom Prison Blues…
I hear the severance tax train a comin’ It’s rolling round the legislative bend And I ain’t seen a better vote-buying scheme since, I don’t know when I’m stuck in Tea Party prison, and time keeps draggin’ on But that severance tax train keeps a rollin’, on down to a legislative vote.
RINO Gov. John “foreigner hunter” Kasich is so excited, he may pee his pants. After a year of debating stupid Tea Party Republicans, his administration is “really close” to reaching an agreement with those in his own party to start soaking the Utica Shale drilling industry in his state. Really close. Really. But, you’ll have to wait until next month to find out just how much the industry will get soaked. They want to announce it and slam bam vote on it before anyone can raise the alarm. So deliberative. So open and transparent. What paragons of authority and leadership to emulate. What jerks.
Here’s the story of a RINO governor and Republicans who apparently are willing to cave on their principles… Continue reading
Ohio Gov. John Kasich released his budget for fiscal years 2014 & 2015 yesterday, and along with it, he resurrected the same plan he first introduced a year ago to increase severance tax on oil and gas production in the Utica Shale (see Details on Ohio Gov. Kasich’s New Tax on Shale Drilling). The plan in a nutshell: Hike the severance tax on Utica Shale drilling, then spread the new-found wealth around to buy votes to get re-elected.
Here’s a summary of the coming changes (and make no mistake, the plan will pass this time):
A pair of bills recently passed the Ohio State legislature and have gone to Gov. John Kasich’s desk for his signature. Both bills affect companies in the oil and gas space, in particular those drilling in the Utica Shale. One bill, House Bill (HB) 430, tightens up the tax code, what is and what is not allowed as deductions for drilling companies. Ohio state auditors have taken advantage of unclear language to aggressively go after oil and gas companies over legitimate tax breaks they receive under Ohio law (to not pay taxes on equipment used directly in producing oil and gas). Lawmakers want to end the tax witch hunts by clearing up language. They did so back in 2016, but Kasich and Democrats successfully spun the issue as a “tax break” under which up to $264 million would have to be refunded to Big Oil. Total lie. But Kasich vetoed that bill and it died (see OH Gov Kasich Vetoed Misnamed ‘Tax Relief’ for Utica Drillers). The bill is back, in a different form, and sent to Kasich for a signature. Will he sign it this time? The second bill, House Bill (HB) 225, addresses the issue of plugging some of the estimated 600 orphan wells in the Buckeye State. HB 225 triples the amount of money set aside to cap orphan wells (money which comes from Ohio’s severance tax, paid for by oil and gas producers). The bill also “creates a more streamlined and efficient process for identifying and plugging” orphan wells. The amazing thing about HB 225 is that both Big Green groups and the drilling industry support it! We predict a quick signature on this one… Continue reading
Hiking the severance tax is not only an anal fixation by Democrat governors, like PA Gov. Tom Wolf (see PA Gov Wolf’s New Budget Calls for 6.5% Severance Tax (Again)), it’s also a fixation for RINO (Republican) governors, like OH Gov. John Kasich (see OH Gov. Kasich Recycles Proposal to Increase Utica Severance Tax). Yet in both states drillers already pay more than their fair share of state and local taxes. In PA it’s called an impact fee (i.e. tax), and in OH it’s called a severance tax PLUS an ad valorem, or property tax. In OH, the ad valoreum tax is raising millions of dollars in counties with active Utica drilling. According to a new report from the Ohio Oil & Gas Association and Energy in Depth, from 2010-2015, the ad valorem tax in OH’s top 6 Utica Shale producing counties raised a total of $43.7 million! Over the next 10 years (2016-2026), the report finds OH counties will get $200-$250 million in new tax revenue from ad valorem taxes. And yet Gov. Kasich insists drillers aren’t paying their fair share. What a sham! The report, titled “The Utica Shale Local Support Series: Ohio’s Oil and Gas Industry Property Tax Payments” (full copy below) is chock full of great news for OH counties… Continue reading