Friday, January 20, 2012

A word from the Ohio Liberty Council - Kasich has gas....

Ohio Liberty Council
2531 Tiller Lane • Columbus, OH • 43231 • 740-837-4593 • 216-342-1147 (Fax)

January 18, 2012

Governor John Kasich
Riffe Center, 30th Floor
77 South High Street
Columbus, OH 43215-6117

Dear Governor Kasich,

I am disappointed to read this morning in the Columbus Dispatch of your plans to impose a state "impact fee" as a new tax on oil and natural gas wells. Though we agree that damage to rural roads and bridges is an issue that must be addressed, we do not agree that a new state tax, in addition to expanding the state severance tax to include natural gas liquids, is the right answer. Particularly when we are talking about "potential damage" vs known actual damage that this tax would pay to repair.

Clearly, the oil and gas boom in Ohio is going to generate significant growth in tax revenues from personal income tax, sales tax, CAT taxes and now additional severance tax revenue. They will also generate tax revenue for county and municipal governments. Since these are rural roads, which are not maintained by the state, we feel that it is an intrusion for the state to levy this new tax. Instead, local communities should be working with the energy companies to be compensated for actual damages which would be much more efficient in actually maintaining these roads and much less burdensome on this important growth industry.

We have told every state official we have meet that they must resist the short sighted temptation to tax natural gas and oil production at the well head. The engine of capitalism is "Cheap, plentiful, energy". Our goal must be to do everything we can do to encourage development of oil, gas and coal by not imposing burdensome taxes at the source, but instead getting our tax revenue from the downline business that will startup and grow because of the low cost, plentiful energy. Let's not kill the goose that will lay the golden egg. Let us instead nurture it for the benefit of everyone in our state. We ask that you reconsider your plan at this time and continue to help these companies establish this industry firmly in Ohio.


Thomas R. Zawistowski
Ohio Liberty Council
800-846-4630 Ext 104
Kasich seeks taxes on oil, gas drilling
Assessments would help pay to repair roads
 Gov. John Kasich also wants to broaden the state’s severance tax to include propane.

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Wednesday January 18, 2012 6:34 AM

Ohio’s oil and gas industry would pay an “impact fee” for deep-shale wells to cover the cost of infrastructure damage caused by oil and gas extraction, part of a package of taxes and fees for the industry that Gov. John Kasich soon will propose.
Kasich confirmed his intentions to The Dispatch yesterday and said he has maintained contact with industry leaders regarding his plans.
This is occurring as energy companies invest billions in leases to drill for oil and gas in Ohio’s Utica shale, and amid rising concerns about the environmental consequences of drilling.
Drilling activity in the state is expected to increase truck traffic on rural roads, potentially damaging roads and bridges.
“We have to make sure we have impact fees,” Kasich said. “At some point, these counties are going to benefit, but in the early years, when it comes to the erosion of roads and infrastructure, we need to make sure that these locals are going to be in a position to manage their infrastructure.”
In addition to the fee — the amount has not been determined — Kasich wants to revise the state’s severance tax to include natural-gas liquids. The tax now applies to the withdrawal of coal, natural gas and other resources but does not include natural-gas liquids such as propane.
The proposals probably will be included in Kasich’s midbiennial budget review, to be introduced in the first half of this year, although they could be announced separately before the budget review is unveiled, he said.
Partly to head off this talk of new taxes, the Ohio Oil and Gas Association is releasing a report projecting that state and local governments will see a $1 billion increase in annual tax income from the industry by 2015 under the current tax system. That would represent a 4 percent increase in proceeds from all businesses, said the report, produced by Kleinhenz & Associates of Cleveland.
“It’s just not good policy to start a new tax because you can,” said Tom Stewart, executive vice president of the trade group.
Environmental advocates say that new taxes are a good idea if some of the proceeds go to communities that need to cover costs related to drilling activity.
“There will be more and more stress on local communities to have the fire and emergency support there to help fund the infrastructure that’s needed” for drilling, said Trent Dougherty, a staff attorney for the Ohio Environmental Council.
But lawmakers need to be careful in deciding how to structure a new tax, said Donald Tobin, tax-policy professor at the Moritz College of Law at Ohio State University. “The question is whether the tax is at such a level to discourage the activity,” he said.
Tobin also has concerns about the state government increasing its reliance on a “revenue source that has significant peaks and valleys.” This could be a problem, particularly if an increase in oil-and-gas taxes coincides with a decrease in taxes from less-volatile sources.
Kasich said he doesn’t want to “discourage development” by imposing fees and taxes that are too high, but he also said that “you can’t have the local people out there having their roads undone and say, ‘It’s not my problem.’
“I think we’re going to be in a really good place on this,” Kasich said, referring to the levying of taxes and fees without pricing companies out of investing in Ohio.
Leaders in the oil and gas industry argue that they already face a substantial tax burden from four state taxes: the personal income tax, sales tax, commercial activities tax and severance tax. They also pay taxes to county and municipal governments.
The severance tax took in $10.6 million in 2010, most of which was related to the coal industry. That is barely a blip in the state budget, but the sum is poised to triple by 2015, according to the Kleinhenz report.
Contrary to perceptions, most oil and gas companies do not earn huge profits from which to pay higher taxes, said Jerry James, president of Artex Oil in Marietta and also president of the Ohio Oil and Gas Association.
“You can kill a business before it has a chance to get started,” James said.


Ohio Unions - I am not anti-union. I am pro individual choice. Big Unions are Big Government.

"Out-of-state union donations, grossly understated by Ohio media, far exceeded the “Yes on 2″ campaign’s entire budget. The Ohio Education Association (OEA), a despicable band of hypocrites whose average pay in 2010 was more than $95,000, took an extra $54 from every member to kill Senate Bill 5. OEA alone dumped more than $5.8 million into “We Are Ohio.”
Did the unions spend $30 million exposing an ill-advised portion of Senate Bill 5, or pushing some compelling argument about the need for powerful public unions? Hah! The unions spent more than $800,000 collecting signatures for the referendum; bragging that this constituted “grassroots” support was the most honest aspect of their campaign.
“We Are Ohio” claimed passing Issue 2 would mean fewer firefighters and nurses, leaving Ohio houses to burn and patients to perish. They released a radio ad saying Issue 2 would “take us back to the days of Jim Crow,” misrepresenting at every turn the effort to limit union power as an attack on Ohio’s middle class. They lied that Republican politicians exploited a “loophole” in the bill, though elected officials have never been subject to collective bargaining. They insisted local budgets were dandy before Kasich’s election.
Even without spending unprecedented amounts to mislead Ohio’s electorate, unions are built for fighting reform; union bosses become millionaires on the strength of their class warfare. In my opinion, Issue 2 came down to two questions:

How many Ohio government employees see through the Progressive narrative shoved down their throats courtesy of their mandatory dues?

How many Ohio taxpayers with friends & family in public work think for themselves when told Governor Kasich is out to steal workers’ benefits and punch their babies?

OEA & Co. don’t have to lumber into a defensive stance when their stranglehold is threatened. They just keep doing what they do every day – painting themselves as victims and taxpayers as villains. It worked, to the detriment of everyone except the union bosses.

Sadly, a majority of Ohio voters chose to ignore fiscal reality. In return for killing Issue 2, Ohio can expect:
More tax hikes than would have been necessary with Senate Bill 5

More layoffs of teachers, firefighters, and police than would have been necessary with Senate Bill 5
More service cuts than would have been necessary with Senate Bill 5

None of Senate Bill 5’s drop-dead obvious reforms to benefits & automatic pay hikes

More lost House seats as employers and citizens flee

Those who voted No on Issue 2 have guaranteed the results they were told their votes would prevent. This is bad news for anyone who doesn’t get rich from the government union racket, especially the thousands of young public workers whose jobs will be sacrificed on the altar of union demands."

I am also tired of otherwise intelligent people using the race card to stop the common sense approach to problem solving. Race has nothing to do with expecting people to have good work ethic, self respect and a desire to get off of welfare and back to work. Using this tired old approach creates dependence on the failed system of socialism to control the poor of every color. Here Newt wins one up for the Gipper.

Please note. This is not an endorsement for Knewt. It is an attempt to educate you on the
failures of the left and their tired excuses, finger pointing and blame throwing. It is also a great
answer with real life examples that contrast how the left holds the minds of people captive while
convincing them that they are free, while real freedom is being independent of that type of thinking.