Alaska Taxes

4-2-13

02 April 2013 6:17am

Today we heard this tax reform 'thank you' commercial on a local radio station, sponsored by the Alaska Support Industry Alliance -- illustrating the many dimensions the controversy covers.  The point about sustainable policy benefiting many generations -- not just this one --  is a cultural value we have stressed for years and we thank the Alliance for its message.  -dh

Status of Alaska In-State Gas Pipeline: 

Mike Chenault, Speaker of the House, Kenai, Alaska, ACES, Photo by Dave Harbour, AGDC, AGIAMike Hawker, AGDC, Alaska House of Representatives, Photo by Dave HarbourThe Alaska House of Representatives last night passed legislation enabling the state’s gasline development corporation to continue progressing towards building its Alaska Stand Alone Pipeline (ASAP) project.   Here is a session late yesterday wherein the House Finance Committee discussed the bill and amendments.  Of particular interest is the back-and-forth regarding responsibilities accorded the Regulatory Commission of Alaska by the legislature.  
Representative Les Gara, Alaska, Alaska Dispatch, AGDC, Alaska Gas Pipeline, ASAP, Photo by Dave HarbourAlaska Dispatch Op-Ed by Representative Les Gara (NGP Photo).  No one who knows natural gas pipelines disagrees with this point: a line that delivers a vastly higher volume of gas does it more efficiently, for less cost. Alaska is in the middle of a shell game with a lot of potential, but not perfect, pipeline prospects. Some people say “just pick something.”  Here’s why that’s not so easy, and picking the wrong project can harm the state with high natural gas prices.
The Alaska Gasline Development Corporation is planning a 500 million cubic feet per day buried natural gas pipeline from the North Slope to tidewater in Southcentral.  House Bill 4, sponsored by Representative Mike Hawker (NGP Photo above-L) and Alaska House Speaker Mike Chenault (NGP Photo-R), empowers AGDC to connect Alaskans with the Arctic gas.  According to the sponsors, "The legislation establishes AGDC as an independent state corporation; provides a clear, strong regulatory framework; and calls on the state to assist AGDC in getting gas to Alaskans within six years. The Legislature created AGDC through passage of House Bill 369 in 2010."

Status of Alaska Oil Tax Reform:  (Here is the status of Alaska production compared with other states, including Texas and North Dakota.)

  • Today's House Resources hearing video.
  • Yesterday's House Finance Committee consideration of SB 21.   Below is testimony prepared by Steve Pratt, Consumer Energy Alliance - Alaska.  
  • Yesterday we offered an "April Fools" update and commentary.  Part of that commentary revealed that Alaska has virtually no savings -- aside from the Alaska Permanent Fund -- when one deducts outstanding liabilities.  Here is a letter dated March 27 from Jay Dulany, President of the Retired Public Employees of Alaska.  Among his many relevant points is this: " based on calculations of the Alaska Retirement Management Board (“ARMB”), the State’s annual appropriation to PERS/TRS will soon exceed $1 billion.  Payments at this level, which will only continue to grow as the UL (i.e. unfunded liability) advances beyond its current $12 billion level, will simply not be sustainable, by neither the state nor by local government employers.  A benefits crisis may not be right around the corner; an employer contributions crisis is."   If Alaska is to fulfill its public employee obligations, the $12 billion liability should be paid off now while Alaska has the savings available.  Otherwise, public employees can expect to have their annual income reduced by a judge someday, as retired employees in Detroit and Stockton can attest.   This is because the state's fiscal house is in disorder, a fact which we believe the bond rating agencies will soon discover.  We also believe the rating agencies have not competently assessed the gravity of Alaska's fiscal crisis for bond holders and future investors.  Any decrease in Alaska's credit worthiness will result in higher rates paid on public debt, further exacerbating Alaska's pending, economic decline.  We believe this challenge is a requirement for increased investment and oil tax reform.  Keeping a predatory tax policy in place is a short term solution to a looming fiscal crisis.  Reforming the oil production tax to create a more attractive investment climate is a long term solution.  The short term model benefits this generation at the expense of the next while the long term approach can make the economy sustainable for this and future generations.  -dh
  • Here are results of a poll on this subject.  Dittman Corp. surveyed 800 Alaskans last week (March 13-14), resulting in a 3.4-percent margin of error. All regions of the state were represented and balanced to the 2010 Census. The House traditionally commissions a poll to help inform members and the public on priority issues before the Legislature.
    “Alaskans, generally, feel our economy is stable, and support many of the issues we have identified,” Alaska Speaker of the House Mike Chenault, R-Nikiski, said. “They agree with us that we need to modify our oil tax system to make us competitive, and build an in-state gasline for in-state use. Alaskans, also, want the chance to decide whether we amend our constitution to allow parents the right to choose where to send their kids to school. Dittman Research and staff have provided us with another top-shelf document we can add to our discussions over the course of the next three weeks. It’s a valuable and informative tool to help us understand where Alaskans stand on issues before the legislature.”

AK urges North Slope producers to grow LNG commitment - Gas Business Briefing - A pending bill would give the state-owned Alaska Gasline Development Corp, which is planning the project, more flexibility in doing engineering along with ...

Members of the House Resources Committee –
 
My name is Steve Pratt, Executive Director of Consumer Energy Alaska, a regional chapter affiliated with the national Consumer Energy Alliance.  We believe the greatest economic threat to Alaska energy consumers is declining TAPS throughput as state spending increases.  We need to reverse these decade long trends.  Consequently your focus on declining throughput and fiscal issues this legislative session is critical.
 
CEA Presentation on Economy 2013 TAPS Budget V1A.jpg
 
As energy consumers, we all have a direct interest in obtaining competitively priced domestic energy.  We also have a direct interest in robust overall economic activity to maintain livelihoods and at least 30% of working Alaskans are dependent upon oil and gas exploration and development for employment.
  
Unfortunately, Alaska oil production has declined from a peak of over 2 million barrels a day to a little over 500 thousand barrels, and is in freefall at the rate of 5 - 7% per year.  What is especially remarkable is that these declines have occurred during times of high and increasing oil prices. 
 
Alaska is capable of making a substantially greater contribution to U.S. domestic oil production and the nation’s energy and economic security than it does today.  Five weeks ago CEA met with Adam Sieminski, the head of the Energy Information Administration in the U.S. Department of Energy.  Mr. Sieminski gave us a presentation on the agency’s draft 2013 Energy Outlook.  To me, Alaska was a disappointment.  In the Energy Outlook, Alaska’s contribution to the nation’s energy supply will never return even to 2011 levels let alone increase unless state fiscal and federal regulatory changes occur.  We are not doing our part to secure US energy security or fulfill our constitutional mandate to develop our resources.
 
 
A sustainable increase of only 500,000 bbls/day from today’s levels, at $100/bbl., would add $1.5 Billion per month to overall U.S. economic activity.  It might also reduce the export of 1.5 Billion U.S. consumer dollars per month to OPEC nations.
 
However, new, risky exploratory and development drilling is necessary to stem the decline in Alaska oil production.  Alaska students need to compete globally for jobs.  Alaska natural gas needs to compete globally to secure markets.  And Alaska oil field development needs to compete globally for investment dollars.  Your work here can enable that ability.
 
The rates and Progressivity structure of Alaska’s current tax regime provide a disincentive to attracting risk capital to the state as evidenced by declining production during times of high oil prices.  As demonstrated in the EIA’s Energy Outlook, increased prices and new technologies have resulted in substantial increases in oil production in other locations around the United States, but not in Alaska, and not because more oil is not available.
 
Alaska’s remoteness from the markets, Arctic climate, high labor and logistical costs argue for a more competitive tax and regulatory structure.
 
Consumer Energy Alliance – Alaska, along with a solid majority of Alaskans, is in favor of the Alaska State Legislature reviewing and approving revisions to the Alaska Tax Code that will improve the investment climate in Alaska. 
 
In closing I will simply note that something is terribly wrong here, and I thank you, members of the Resources Committee, for taking on the task, with the Governor, of coming up with useful changes to the tax code.

  The point about sustainable policy benefiting many generations is one we have stressed for years.

Audio: 
audio/mpeg iconAlaska's Future Voices
Categories:

4-1-13 - Beware Of The April Fools

01 April 2013 8:00am

 Governor Sean Parnell Urges Alaskans To Comment On Tax Reform TODAY!

Commentary: Just for Alaskans

by 

Dave Harbour

Normally, our commentary is designed for consumption of Alaskans, Canadians and decision makers in the Lower 48--and our readers in other countries who are interested in how Alaskans and Canadians are confronting Northern energy challenges.  

Today, we direct a comment to fellow Alaskans.

Most of us know that Alaska's economy hangs on by a thread.  Elected officials talk about billions in various savings accounts in addition to the Alaska Permanent Fund.  But the Public Employee and Teachers' Retirement fund liability is bigger than Detroit's at an amount approaching $15 billion.  This doesn't include hundreds of billions of dollars of state and municipal bond indebtedness -- that also requires 24/7 gigantic pipeline gushing a reliable torrent of currency.

So we are really living from paycheck to paycheck with Alaska North Slope (ANS) oil paying for almost 95% of the state budget.  That undiversified budget revenue, in turn, depends on the price of oil growing at rates exceeding $100/barrel in order to compensate for oil production declining at an annual rate of 5-7%.  Meanwhile, no matter what the politicians say publicly, the state budget continues to creep higher.   Even we optimists should view this situation realistically: as frightening, unsustainable and requiring immediate action.

What immediate action could rescue such foolish fiscal planning and such an unsustainable economy?  

The near term step: stop digging the hole deeper and cut spending dramatically--say, by 5-7% annually to make up for oil production declines (Note, the cuts would have to be deeper if the price of oil begins to decline.)  In doing so, lawmakers will have to decide if Alaska can continue to afford to be the most attractive magnet state in the nation to those coming North for entitlement benefits rather than benefits associated with free enterprise, self sufficiency and procreation of the pioneering spirit.

The medium term step: since Alaska's oil taxes are among the highest in the world, higher taxes are now proven to not be the answer.  In fact, the experiment of exorbitant oil taxes has failed to sustain -- and even threatens -- Alaska's long term future.  

Accordingly, this is now the time to view the future through a different lens: the lens of competition.  In recent weeks, opponents of tax reform have argued:

  • that since Norway's take is high, Alaska's should be high.  But Norway's production is closer to markets and doesn't have to subsidize an 800 mile pipeline.  Its tax base is very diversified and it does not give out permanent fund dividend entitlements to every man, woman and child.  In Norway, unlike Alaska, a deal is a deal, protecting investors from unpredictable, expensive lawsuits and environmental activist delays.
  • that taxes are just fine because oil employment is high.  They neglect to say that high Alaska oil employment results from decreasing production and increased maintainance of aging facilities. 

(Continued below)

April Fools....  The best of the April Fools emails we received today were one from a Canadian environmental organization describing a project to use injected dry ice to bind cracks in the Arctic icepack due to global warming.  Another announced that the President of the United States had hired one of our readers (a distinguished, think tank energy executive) as a special advisor.  With all the crazy happenings abounding everywhere, we give this warning so our readers will not to confuse trickster efforts to fool us today with normal, foolish policy initiatives.  -dh

Carl Portman, Resource Development Council for Alaska, Alaska oil taxes, ACES, Photo by Dave HarbourThe Resource Development Council for Alaska's Deputy Director, Carl Portman (NGP Photo, at earlier hearing), reminds us that Governor Sean Parnell¹s oil production tax reform bill, SB 21 is now "front and center in the House", having passed the Senate by an 11-9 margin.  The House Resources Committee will be taking public testimony on the bill Today, April 1 from 1:00 to 3:00 p.m. Testimony will be taken statewide and the preference is for people to testify in person at local  Legislative Information Offices (LIO). Comments should be limited to two minutes.  ...  The State House Majority released its annual statewide survey last week that found Alaskans support modifying ACES and want the Legislature to stop studying the issue and act this session. The survey found that 56 percent believe ACES should be modified and 63 percent say its time for the Legislature to take action to stem the decline.  For additional information ... see RDC's updated Action Alert at:  http://www.akrdc.org/alerts/2013/housesupportcssb21alert.html

 

Tom Brennan, Snowflake, ARCO, ACES, AGIA, Anchorage Daily Planet, Anchorage Times, Photo by Dave HarbourAnchorage Daily Planet by Tom Brennan (NGP Photo).   ... Hopefully Shell will be back in the game next year. ConocoPhillips will also be exploring in Arctic waters in 2014 with plans to drill one well in its Devilʼs Paw prospect. So far federal authorities seem agreeable to ConocoPhillips plans.  We wish both companies good luck, good fortune and safe seas.      ***      Let's hope that the state's new oil tax schedule is reasonable enough to attract new oil development investments, which could increase Alaska's oil output and give a big boost to its economy.

 

 

(Continued)

 Likewise, some oil lobbyists say the current tax reform being considered is too little, too late.   This is a dangerous position to take since it begs the question, "OK, fine, what production will you guarantee for what level of tax reform?"  That would stop them short since no lobbyist can predict what a board of directors will allocate to Alaska exploration or development years from now.  It also ushers forth the specter of a state embracing concepts of blackmail or bribery depending on who is on the offering or accepting end of the transaction.

One adult position to take over these squabbles might simply be this: 

If...

  • ...Alaska is losing investment and production because its rich but remote resources are more costly to develop than those in North Dakota, Texas and California, then...
  • ...why not reform Alaska's tax-royalty burden to be competitive with tax-royalty costs of those competing areas -- further discounted for Alaska's higher costs: labor, logistics, 800 mile Arctic pipeline, tanker and port costs, weather, etc.?  That would reduce the uncertainty and bickering to a more scientific, mathematical calculus. 

If lawmakers took this less emotional and more logical approach, they wouldn't argue with lobbyists about what amount of tax relief was 'too little' or 'too much'.  They could still collaborate on issues like how to make the tax and regulatory environment more clear and predictable.

The long term step the country could take to make Alaska more productive to itself and to the Nation at large, is to make Arctic Offshore, Arctic National Wildlife Refuge and National Petroleum Reserve Alaska more friendly to reasonable development and permitting processes more reliable and timely.

*     *     *

We referred to three steps above as solutions for Alaska's imminent fiscal crisis.  Most will require several years to mature and bear fruit--even if the seeds of reform are planted this spring.

That leaves cost cutting as the only effective near-term tool available.   Though tax reform, is critical to long term survival, it will require courageous lawmakers willing to run over constituent fires and through the gauntlet of entitlement program beneficiaries who see reform as an immediate threat to their subsidized lifestyles.  

But even that challenge will be easy compared with the challenge of curing this year's budget and succeeding budgets in proportion to declining oil production and volitile oil prices.

One's view of human nature leads to a conclusion that politicians, by nature, will not be able to successfully confront these short and long term challenges.

One's optimistic nature aches for the courageous Alaskan leadership which believes that, "The future of our Children is more important than my reelection."  While we see signs of such courage, we are not sure it exists as a majority favoring meaningful spending and taxing reform.  

While we hope for courageous leaders, we know that Jesus, the Beowulfs and Medal of Honor recipients typically represent a minority and not a majority of spiritual or physical warriors.  Furthermore, we have been told that hope can never be a wartime or political strategy.  

But we also remember others who have shared our challenges with dignity and reason and had reason to be optimistic.  Through the awful political struggles of early 17th Century England, we are thankful for Alexander Pope's message to us amid today's unrest, that, still, "Hope springs eternal in the human breast". 

 100 demonstrators protest Pacific Trails Pipeline - CBC.ca - The pipeline will run more than 450 kilometres through the BC Interior from Prince George to Kitimat, transporting liquefied natural gas to be sold to ...

Ewart: Pipelines proving to be industry's Achilles heel - Calgary Herald - By Stephen Ewart, Calgary Herald March 9, 2013. Tweet. Comment. ... Oilpatch historian David Finch calls pipelines the Achilles tendon of the oil and gas industry - critically important to movement and a complete nightmare if they rupture. From ...

 

Categories:

3-27-13

27 March 2013 9:48am

Message from Governor Sean Parnell: 

Alaskans are one step closer to realizing more economic opportunity through increased oil production.
 
Alaska, Governor, Sean Parnell, State Senator, Cathy Giessel, oil taxes, ACES, Photo by Dave HarbourLast week, the Alaska Senate passed Senate Bill 21, legislation to increase our competitiveness and grow our economy. This is welcome news for Alaskans, especially those who care about the long-term prospects for our state.
 
Although oil production in Alaska has been declining over the past decade, SB 21 offers an Alaska comeback in oil production. The Senate-passed measure will put us on a path to reclaiming our standing as America’s greatest oil-producing state.
 
As Senator Cathy Giessel (NGP Photo archive with Governor Parnell) said on the Senate floor, "This is about the progress of Alaska, our private-sector economy, and its potential growth.”
 
I commend her and her colleagues in the Senate who voted for Alaska’s future, not status quo decline.
 

 

Categories:

3-26-13

26 March 2013 9:29am

 

Tax Panel Reviews Impact On Coming Generations
 
By
 
Mary Barr
 
The Political Science Association of Alaska and Alaska College Republicans presented a panel last Wednesday (i.e. 3-20-13) at the University of Alaska-Anchorage campus, targeting  the impact of today’s tax policy on future prosperity.
 
Event Chair, Portia Watson, introduced the event moderator, Dave Harbour, publisher of Northern Gas Pipelines.  He opened the evening with a question of “intergenerational equity”.  Do we want the next generation to have the opportunities we now have, and how can we achieve that goal?  How should we proceed with the allocation of Dr. Scott Goldsmith, Oil Taxes, Soft Landing, Institute of Social and Economic Research, University of Alaska - Anchorage, Photo by Dave Harbourour resources to assure future prosperity for our children?
 
Dr. Scott Goldsmith (NGP Photo), Professor Emeritus of Economics, contrasted the methods of financing Alaska’s operating budget with techniques used by other state governments.  Where other states support themselves with a diversified variety of taxes and fees, Alaska derives 95% of its state revenue from one source: the petroleum industry.  As production has fallen, state spending has soared creating an unsustainable model.  The question becomes how to find a balance to allow a viable economic future for coming generations.
 
Andrew Halcro, former legislator and current chairman of the Anchorage Chamber of Commerce, reviewed the politics of the relationship between the state and the petroleum industry over the last 40 years.  Oil company revenue includes a corporate income tax, property tax, royalty payment, and a severance (i.e. or, production) tax.  Progressivity of the production tax discourages investment, and Alaska’s tax structure has become punitive.  Halcro said that Alaska has become a state that pays people to live here.  Alaskans seem to have no apparent interest in reining in  government spending but are highly focused on continuance of Permanent Fund dividend checks for themselves..
 
Dr. Forest Nabors, Professor of Political science reviewed the lack of diversification in the economy and how the federal tax structure disrupts upward mobility.  The current federal tax code actually creates an assigned strata of “class” that discourages upward mobility.  He said that entrepreneurs create wealth when they’re successful, but that as a business succeeds, taxes become more punitive creating a barrier to obtaining true wealth.  The inheritance tax, he said, makes passing a successful small business to the next generation very difficult.  He noted that Alaska has few if any entrepreneurs due to such political barriers.
 
Harbour wound up the evening with comments on the Norway model of managing taxation and regulation.  “In Norway,” Harbour said, “a deal is a deal”, with tax, regulatory and environmental issues agreed to in advance of an oil company’s investment.  “In Alaska”, he said, “a deal is not necessarily a deal”.  He said that while a company’s bonus bid and lease sale royalty payments provide revenue certainty to Alaska,  the rate paid on each of Alaska’s three oil taxes can increase – even retroactively and with little notice -- upon a vote of the legislature and the signature of a governor. 
 
“Some legislators demand guarantees from the oil industry in return for tax reform”, Harbour said, “but when government acts to increase taxes, no one asks “where is the industry’s guarantee from the state that higher taxes will produce improved state services?”
 
“If the state provides investors with a predictable investment climate,” Harbour said, “the coming generation can have more certainty that their way of life will be filled with as much opportunity as their parents experienced.” 
 
Harbour also asked the audience to define the word, "people", as it is used in Alaska's constitution: "Article 8, Section 2. says, 'The Legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the State, inclucing land and waters, for the maximum benefit of its people.'"
 
"Here's the question I would leave you with," Harbour said.  "Did the founders intend to define 'people' as limited to today's generation, or does the definition include all present and future generations of Alaskan people?
 
"If the definition includes only today's adults and kids," he said, " then their elected representatives would be right in taxing all productive businesses to the hilt, to benefit the contractors, public employees, entitlement programs and today's other beneficiaries--even if those taxed businesses were not in business a generation from now.
 
"But," he said, "if the definition of 'people' also includes future generations of Alaskans -- you and your kids -- then today's policies should be designed to make Alaska a good place to invest, both now and into the future."
 (Note: NGP always invites participants and knowledgeable readers to provide additions/corrections to our work.  Accuracy is one of our goals.  -ed)

 

Categories:

3-19-13

19 March 2013 8:45am

Harper Tanker Safety Plan Changes Nothing in Pipeline Debate - Huffington Post Canada.  When Kinder Morgan bought the Trans Mountain pipeline in 2005 there were ... 

Scott Goldsmith, Dr., University of Alaska, Anchorage, Economist, Photo by Dave Harbour

NGP Alert:

 Alaska Tax Forum tomorrow night in Anchorage sponsored by Political Science Association Alaska and Alaska College Republicans: "The Taxes of Our Future".  Please come and support Alaska's/America's future leaders.  Speakers include Dr. Scott Goldsmith (NGP Photo), Dr. Forrest Nabors, Anchorage Chamber of Commerce President Andrew Halcro and Northern Gas Pipelines publisher, Dave Harbour.  (Program Details)

From Governor Sean Parnell's Office:

* ACTION ALERT *
March 19, 2013
 
Dear Alaskans:
 
Governor Sean Parnell, Oil Taxes, ACES, Alaska taxes, Competitive, letter to alaskans, Photo by Dave HarbourAlaska is at a crossroads. Declining oil production poses a serious threat to our state. Thankfully, legislation to turn up oil production in Alaska and grow a positive future for Alaskans awaits passage in the State Senate. 
 
Senate Bill 21 would make the State competitive with other jurisdictions in the United States and across the globe.
 
Alaska cannot afford to wait. It’s time for us to act.
 
Senate Bill 21 is fair to Alaskans, it encourages new production, it’s simple and restores balance to our tax system, and it will make Alaska competitive.
 
Juneau Empire/AP, by Becky Bohrer.  Both sides are ratcheting up the rhetoric on oil taxes ahead of this week’s expected vote in the Alaska Senate.
The Senate has worked hard on our plan  to increase production for Alaskans' future.  
 
Your voice is important: Call your Senator and urge passage this week. Encourage them (sic) to vote yes for Alaska’s future. Vote yes on Senate Bill 21.
 

Until next time,

Governor Sean Parnell (NGP Photo)

Program:

 

“ The Taxes of Our Future”
 
Wednesday, March 20th.
UAA Consortium Library 307 6-8PM
 
Program Schedule:
4 minutes: Program Introduction – Portia Watson, On behalf of Political Science Association Alaska  & Alaska College Republicans
4 minutes: Panel Introduction and moderator- Dave Harbour, Publisher, Northern Gas Pipelines
 
Speakers:
20 minutes: Local and State Taxes- Dr. Scott Goldsmith ICER
1. Income Oil and Gas Productivity
2. Oil and Gas Income
3. Oil and Gas Royalty
4. Oil and Gas Production (ACES)
 
20 Minutes: The Oil tax Issues – Andrew Halcro (former legislator), President, Anchorage Chamber of Commerce
 
20 Minutes: Federal Taxes- Dr. Forest Nabors
1. Basic federal tax structure
2. Progressive tax vs. Flat tax
 
7-minute summary: Dave Harbour
 
20 minute: Q&A

 

Categories:

3-15-13

15 March 2013 5:25am

Please Put This Event On Your Calendar If You Will Be In Anchorage Next Wednesday!  (Note: this informative presentation follows a recent oil tax debate sponsored by the Anchorage Chamber of Commerce.  -dh) 

“ The Taxes of Our Future”
 
Wednesday, March 20th
.
UAA Consortium Library 307 6-8PM
 
Program Introduction – Dave Harbour
 
Andrew Halcro, Anchorage Chamber of Commerce, Oil TaxesPanel Introduction and Moderator- Andrew Halcro (NGP Photo)
Speakers:
 
Local and State Taxes- Dr. Scott Goldsmith (NGP Photo-R)
1. Income Oil and Gas Productivity
2. Oil and Gas Income

3. Oil and Gas Royalty
4. Oil and Gas Production (ACES)
 
 
The Oil tax Issues – Roger Marks (NGP Photo-Below)
1. The Oil tax issue
2. Perspectives from the State Roger Marks, Alaska oil taxes, ACES, Photo by Dave HarbourLegislature
 
Federal Taxes- Dr. Forest Nabors
1. Basic federal ax structure
2. Progressive tax vs. Flat tax
 
Summary: Andrew Halcro
 Q&A
 
Coordinated by Portia Watson (NGP Photo below, of College Republicans following Candidate Forum, 9-20-12; Watson upper right in red)
 
Sponsored by Alaska College Republicans
 

 

Juneau Empire: How the States Tax Oil

Comment: While the net profit production tax listed is impressive enough, it doesn't represent the whole story.  Alaska also takes a 15% royalty as a product of Prudhoe Bay lease sale agreements, a discriminatory statewide property tax paid by no other industry in addition to a significant corporate income tax.  If lawmakers truly want to make Alaska's oil tax regime compeititve, they should modify taxes and further discount them based on Alaska's uniquely high costs that include labor, logistics, climate, transportation and geological risks.  -dh

Fairbanks News Miner.  A bill to allow a major natural gas pipeline cross the eastern end of Denali National Park and Preserve passed the U.S. Senate Energy and Natural Resources Committee on Thursday.  The Denali Park Improvement Act, sponsored by Sen. Lisa Murkowski, R-Alaska, also would allow construction of a small hydroelectric dam near Wonder Lake. The dam would be built by Doyon, Limited, Interior Alaska’s regional nonprofit Native corporation, to provide power to the Kantishna Roadhouse.

 

CBC News.  Prime Minister Stephen Harper announced a final Northwest Territories devolution deal at the territory's legislature in Yellowknife Monday.  ...The final agreement, as it stands, gives the Nellie Cournoyea, Inuvialuit Regional Corporation, NWT, Yukon, Inuvik, DevolutionNorthwest Territories more control over its natural resources — it stands to get half the money collected from oil, minerals and diamonds. Based on last year's numbers, that would have added about $69 million to the territory's budget.  Five of the territory's seven aboriginal groups signed a consensus document, including Nellie Cournoyea (NGP Photo), a former N.W.T. premier and the current chair of the Inuvialuit Regional Corporation.

Yesterday U.S. Sen. Lisa Murkowski (NGP Photo) said in response to the Department of the Interior’s assessment of Shell’s 2012 Arctic exploration program, “There’s a history of safe drilling in Alaska’s Arctic waters going back to the 1970s. While Shell’s exploratory drilling program maintained that record of safety, they did experience problems with transportation and in other areas that need to be addressed before Shell proceeds. However, I want to review the full report to ensure that stricter oversight is not code for prohibiting access to our resources. 

“Alaska’s offshore resources represent one of our greatest opportunities to improve America’s energy security," she said.  "It will generate badly needed revenue without raising taxes, keep the trans-Alaska oil pipeline operational, and show the way for Arctic exploration around the world.”

The Beaufort and Chukchi seas are estimated to contain 27 billion barrels of oil and 132 trillion cubic feet of natural gas. 

Alaska College Republicans following Candidate Forum, 9-20-12.

Categories:
Syndicate content