Debate over oil taxes are continuing in Juneau, as the Senate committee on TAPs throughput is hearing Governor Sean Parnell’s oil tax proposal. State Senator Bill Wielechowski of Anchorage has been an outspoken opponent of the Governor’s plan, and was a guest on KSRM’s “Sound Off” this morning..
Sen. Wielechowski(D-Anchorage): “You know, its a fundamental difference in philosophy. The Governor thinks we cut taxes, we go back to the failed philosophy we had in place for thirty-years and that will somehow magically get us more production, it didn’t work for thirty-years, it’s not going to work now. We need to change what we’re doing. Yeah, lets have tax breaks that are targeted to new production you produce new oil you get tax breaks. I think we agree on that, I think that’s where the public is on this. But also, the state needs take a different approach. When we put out a lease on the North Slope, we need to have a production plan in place, so that oil companies can’t sit on leases like they’re doing right now. We also need to have enforcement of the leases, when leases are put out, have Department of Revenue/Department of Natural Resources go out, figure out the net present value and in turn rates of return. If they can make a reasonable profit, they have a legal obligation to do it right now, that’s the terms of their lease that they signed, and so the state needs to act like a sovereign.”