News & Notes December 5, 2013
House Republicans Propose New Severance Tax Hike, Cleveland Plain Dealer Notes: As oil and natural gas drilling continues in Ohio through hydraulic fracturing (fracking), we need the companies who are profiting to pay their fair share. A ‘severance tax’ is the fee paid by corporations that drill for oil and natural gas and extract it from beneath our feet. (ie. they ‘severe’ a natural resource from the land). The House proposal is endorsed by the Oil and Gas Drilling lobby because it will create one of the lowest severance taxes in the nation at only 1%.
This proposal falls far short, because the wealthy corporations will not be paying their fair share. Our severance tax should generate adequate revenue to serve Ohioans by uplifting local communities, provide resources for any environmental impacts that result from drilling, or helping to serve those most in need. Ohio does not need another income tax cut that will primarily benefit the wealthiest Ohioans.