Report: 'States consider oil and gas levies'; Louisiana goes against the grain

The Wall Street Journal reports that Louisiana is bucking a national trend of states attempting to relieve budget shortfalls by increasing taxes on oil production.
 

Lawmakers in Pennsylvania and California have proposed what are known as severance taxes on oil and natural gas produced in their states. A tax increase took effect in Arkansas at the beginning of the year, and Alaska last year raised its oil-production tax.

Some lawmakers in Louisiana want to take the opposite tack, in a bid to attract more drilling. The state House of Representatives recently approved a package of tax cuts targeted at certain high-cost forms of oil and gas production. Democratic Rep. Nickie Monica, the lead sponsor of one measure in the package, said he hopes to give Louisiana a competitive advantage at a time when other states are raising taxes. “We’re bucking a national trend,” he said.

Mr. Monica’s bill has encountered resistance in the state Senate, however, where lawmakers are concerned about reduced tax revenue.

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