Posted on 01/18/2011 9:53:23 AM PST by thackney
Gov. Sean Parnell is proposing sweeping changes to Alaska's oil and gas production tax, an effort that he says is aimed at boosting oil production and creating more jobs for Alaskans.
Among other things, the bill, proposed on the eve of the legislative session, would alter the tax rate assessed under the barely-3-year-old tax regime known as Alaska's Clear and Equitable Share, or ACES, one of Sarah Palin's legacies from her partial term as governor.
The tax-rate change alone would cost the state treasury more than $5.2 billion between fiscal years 2013 and 2017, according to an analysis released by the governor's office.
The proposal would change the progressive surcharge triggered when a company's net profits top $30 a barrel, subjecting incremental amounts above that threshold to higher taxes. For oil field units now in production, it would cap that surcharge at 50 percent when oil prices top $92.50 a barrel; for new fields, the cap would be at 40 percent at higher-priced oil.
Parnell said it's wrong to look at the plan as though his administration is taking money from the state treasury; at least $11 billion is in state savings accounts and his intent is to expand the economy, not focus on growing government reserves, he said.
His proposal also would provide tax incentives aimed at encouraging infield North Slope development.
Oil is king in Alaska, largely responsible for keeping the state running and lining its coffers. Politicians have been looking for ways to stem declining production and get more oil flowing through the aging trans-Alaska pipeline system.
(Excerpt) Read more at adn.com ...
Alaskan Oil and Gas jobs:
2008 Monthly Average = 12,900
2009 Monthly Average = 12,800
2010 Monthly Average = 11,800
Forecast 2011 Monthly Average = 11,700
Alaska Wage and Salary Employment Forecast
http://labor.state.ak.us/trends/jan11.pdf
Page 6
http://labor.state.ak.us/trends/jan10.pdf
Page 7
Palin is the only Gov I've seen up here in 20 years who stood up to them and because of that I trusted her.
Oh well, it's only 5 billion dollars anyway. Not like the state has any spending cuts, tax increases, under funded pension plans, or other problems to worry about. It just stinks politically as usual.
Politicians change tax structure, not the industry being taxes. Or did I misunderstand you?
What they, and any business needs, is a policy that quits bouncing around like the wind.
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