Most House Democrats today voted against House Bill 375, legislation that increases the tax rate on oil and gas drilling to largely pay for an income tax cut in Ohio.
House Republicans’ plan to alter Ohio’s severance tax to two and a-half percent and would establish Ohio as the only state in the country to require oil and gas revenue—which is predominantly generated in rural and Appalachian working-class communities—to pay for an income tax cut that disproportionately favors Ohio’s wealthiest citizens.
A review of oil and gas taxation policies across thirty-five states that levy a tax or fee on drilling production shows that no state uses any amount of oil or gas revenue to pay for any level of income tax reduction.
Quotes from Democratic lawmakers throughout the state are below:
“Ohio Republicans will stop at nothing to pad the pockets of the wealthy and well-connected. No other state in the nation uses taxes on oil and gas to fund tax cuts for millionaires. This is a missed opportunity to do the right thing by Ohio’s local communities that are on the front line of confronting new challenges from this burgeoning industry.” --Democratic House Leader Tracy Maxwell Heard (D-Columbus)
“Oil and gas severance taxes must be devoted to funding adequate inspection and oversight, plugging orphan wells, and investing in impacted communities. This bill is woefully inadequate and strips wealth from southeast Ohio to provide tax breaks for the wealthiest Ohioans.” --Assistant House Democratic Leader Debbie Phillips (D-Albany)
“It is a sad day when we have the chance to make a difference to an entire region of the state and fall short of that goal. I have worked with local elected officials and economic development leaders over the last few months on this issue. All have emphasized