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To: LRoggy
Maybe you should read Alaska’s constitution before you make a comment like that.

Perhaps you should read it as well. That only deals with the royalties, which is not an issue or a concern. The royalties are in line with other areas.

The problem is the massive taxes piled upon top of the royalties. These taxes are NOT shared with the people, they only fund the government.

As an example, only oil & gas property pays state property tax. No other industry or property pays tax.

At current pricing, the total take for taxes, royalties to all agencies claiming a piece of the action is about 85% of the selling price. It is an insane amount.

It is also the reason places like North Dakota and Texas are booming for oil drilling and watching production rise, while Alaska continues to decline with little new drilling.

7 posted on 03/12/2012 6:27:43 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney

Money is fungible. If the residents are not paying state or local taxes because of the oil drilling taxes that is just as legit as higher royalties. If Alaska wants to utilize this approach, and they balance the budget, SO WHAT? Last I looked there is no right in the constitution (ours) to drilling oil. If the taxes are too high, GO ELSEWHERE. The majors were slow to realize the potential of fracking and let others buy up the best spots. TOO BAD!! They made a decision to not go ahead with drilling when oil prices were MUCH LOWER while others committed capital. Now when oil prices are much higher they complain about taxes??

Come on, learn some common sense.


8 posted on 03/12/2012 6:53:22 AM PDT by LRoggy (Peter's Son's Business)
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