Production, price issues complicate Kasich’s severance tax plan

Low production, plus a sharp drop in oil prices, may complicate Ohio Governor John Kasich’s plan to help pay for a statewide income tax cut by hiking taxes on oil and natural gas producers, reports the Daily Signal, the Heritage Foundation’s news site. The Signal says that an analysis of Ohio Department of Natural Resources (ODNR) records by Matt Mayer, president of the free-market think tank Opportunity Ohio, shows that yearly oil production in Ohio has been tens of millions of barrels short of Kasich’s projections. Mayer said the less-than-projected production and low oil prices guarantee a severance tax hike would not be the revenue source that Kasich has been counting on. For more, read the full story.