Governor Sean Parnell is continuing to advocate for changes to the state’s oil tax rate, saying that experts have warned that our current tax system taxes too much when oil prices are high and exposes Alaska to credit obligations when prices are low.
Gov. Parnell: “That is why I proposed a simpler tax regime with incentives geared towards actual new production. With targeted reforms, Alaska can move to the front of the oil-producing pack. The Legislature’s own consultants noted the positive impact our bill would have on Alaska’s global competitiveness. Specifically for new production, when the price of oil is $100 per barrel, under our proposal, Alaska would go from being less competitive than Russia and Venezuela to being more competitive than Texas and North Dakota. My pledge to you is this: I will work to pass a tax system that is fair to Alaskans, one that encourages new production, one that is simple so that it restores balance to the system, and one that makes Alaska competitive for the long term.”