Ohio Gov. John Kasich is right about the natural gas drilling boom in East Ohio. It is big and will benefit the entire region.
Kasich believes gas production may be just the shot in the arm Ohio's budget needs to provide tax relief to Buckeye State residents. Reportedly, he is considering a plan whereby severance taxes on natural gas and liquids extracted from it would provide enough money to grant an income tax break to Ohioans.
Before than can happen, much will have to be accomplished. Legislators will have to amend the severance tax structure - and the drilling industry will have to go along. Clearly, Ohio cannot increase its severance taxes beyond the point of remaining competitive against other states with rich gas deposits.
Then, of course, the question of how much of a tax break can be paid for will have to be addressed.
What is notable about Kasich's plan, in contrast to how most other states handle tax increases and revenue from them, is what he wants to do with the money. He wants to provide tax relief for Buckeye State residents. How refreshing.
Kasich deserves support for the idea. Now, let's hope he can make it a reality.
