House leaders are looking over Gov. John Kasich’s budget proposal which includes a big swing of the bat when it comes to a tax increase on oil and gas drilling. But the industry is ready to fight the plan. Kasich is trying again to raise the so-called severance tax, this time proposing to move it to 6.5 percent, which he says would raise $325 million. Shawn Bennett with the Ohio Oil and Gas Association says the industry is already hurting because of a drop in prices. He claims a higher tax rate will further discourage investment. “As prices decrease and taxes increase you shrink the amount of economics that are available in the play so you’re taking what was once 3,800 square miles and maybe shrinking it down to 15 because it all depends on what the economics of that well is going to be,” said Bennett. Bennett adds that the revenue directed back to local communities won’t outweigh the benefits those towns would reap with continued investment. Though, Kasich is receiving support from an
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