Parnell Continuing to Call for Changes to Oil Tax Progressivity

Debate in Juneau is continuing over changes to the state’s oil tax regime, and Governor Sean Parnell, is continuing to call for changes to progressivity, saying that oil prices are high, progressivity discourages investment, and when prices are low, generous tax credits that are based on spending put the State’s treasury at risk. Parnell said that that’s not the way it was supposed to work, but the data tells the truth…

 

Gov. Parnell: “New analysis shows that although oil prices are $13 a barrel higher today, revenues to the State would have been more this fiscal year – if production had held to 2008 levels. With increasing costs and declining production, there is less and less available value for Alaskans. We cannot hold onto the status quo, knowing that means production decline and declining opportunity for Alaskans. Ultimately, the question before the Legislature is what kind of opportunity we will create for Alaskans today and building for Alaskans tomorrow. Our plan balances the needs of Alaskans by providing more revenues at low prices in exchange for lower revenues at higher oil prices. It does this while creating a competitive environment that will attract investment and create generations of opportunities for Alaskans.”

 

 

Parnell said that Alaskans deserve to reap the benefits of our oil and not passively accept status quo decline. Any legislation that meets his four guiding principles will not only have his support, it will get the governor’s signature.

Categories: News

About Author