People need to get the full story...the VECO scandal. Put in the correct context.
Well, there goes the ‘RATS’ claim that she is “in bed” with “BIG oil.” Obammie is this BIG loser on this one.
If I’m reading this right, the Alaska state legislature voted for this, and Palin decided to give the citizens the money instead of letting the politicians get ahold of it to spend.
If we ever give university degrees in liberal BS analysis this would be a good case study. I know nothing about the history of this and can tell they are dancing around this trying to make it sound like Palin supported a windfall profits tax when probably was tax increase that resulted in a ‘windfall’ for the state.
Question is whether this was in increase in corporate net income, and if so from what level to what level and compare that with some other states. If it was really a windfall profits tax (e.g. something time limited or triggered at some level etc.) then it is poorly written.
Taxes aren’t always direct and linear. Sometimes raising them can be useful. Sometimes lowering them can be useful. There’s an effect of the market whenever you do so and all situations are inherently unique.
That said...the taxes still trickle down.
It’s not as simple as calling it a tax, or a windfall tax as O’Bama has called it. It’s a comprehensive bill, that has resulted in a win-win.
Here’s the actual deal...
Legislation that generates billions of dollars in additional oil and gas revenue for future generations of Alaskans passed the Alaska Senate this evening. HB 3001 replaces the state’s outdated ELF system with a thoroughly modern oil tax plan that raises significantly more revenue and can help to refill the trans-Alaska Oil Pipeline by encouraging the industry to explore for new oil deposits.
Sen. Ralph Seekins (R - Fairbanks) chairs the Senate Special Committee on Natural Gas Development, the committee responsible for the landmark legislation.
“This legislation hits all the bases. It modernizes the state’s petroleum tax structure and spurs the industry to go out and drill for more oil by granting tax credits for verifiable expenditures made in Alaska. This bill also captures our fair share of record high oil prices so Alaska has the revenue it needs for many years to come,” Said Sen. Seekins.
“There is far more to this piece of legislation than just raising more oil revenue because it eventually creates new, good paying jobs in many different sectors of the economy,” said Senate President Ben Stevens.
Here are some highlights of bill:
* 20% production tax credits for oil and gas investment in Alaska
* 22.5% tax rate on “net” positive cash flow or “Production Tax Value”
* Progressivity. A higher tax rate (.25) kicks in when oil sells for more than $55 per barrel.
* At today’s ANS closing price of $75.05 and a full year of production the PPT will generate 3.7 billion in one year revenues, almost three times the amount generated under the current ELF based production tax.
* Protects declining Cook Inlet oil production by leaving the existing tax structure in place.
* Requires a report in 2011 about how well all the incentive provisions are working to enhance exploration, development and production in the state.
FINALLY. I’ve been expecting this attack, as leftists attempt to split the conservative block on Palin.
Bottom Line: Palin is NOT in the pocket of BIG OIL. In fact, she is hard charger who is their pocket.
It will hard to pin the “oil lacky” tag on her.
It is really sad the level that some people on this conservative web-site will go to to cover-up bad behavior on the part of a Republican.
Increasing taxes is not a good thing and is unnecessary.
People seem to forget that FreeRepublic is dedicated to conservative principles, not boosting the GOP.
Sometimes the two do not go hand and hand.
I heard Mort the nut rip her on Hughs radio show. He was pysco.
See the following link please:
http://www.taxfoundation.org/blog/show/1596.html
Seems this was in the works when Governor Palin was sworn in.
Alaskan Legislatures voted 15-4 in May 2006 for this “Windfall Profits Tax”. Governor was Murkowsky at the time.
I’d need to read the links at the article for further understanding of what Governor Palin’s involvement was, but I am up beyond my bedtime now.
Seems that in more than a dozen articles I’ve been researching, there isn’t any explanation of the tax better than the one at the link above, but still no explanation of how Gov. Palin is involved other than perhaps (a personal assumption) signing the hangover legislation from the previous Administration.
I DON’T KNOW.
If I have time tomorrow to persue this more, I will. I want to know all about this as I disagree with “Windfall Profits Taxes”.
btt
Appreciate all the insight. Just for the record, I am now enthusiastic for the McCain/Palin ticket because of Palin. Watch that Mort guy - he was like a mouthpiece for the DC establishment that has just got to hate everything that Palin positively brings. It was like there was almost something personal going on there.
I think Alaska is a different situation than other states in that the sole value of a majority of the land isn’t for settlement but just for mineral rights. Any US citizen could go to Alaska today and begin participating in the oil fund benefit. Would you vote for the Alaska constitution to be changed to transfer the “oil” from the citizens to the state?
I don’t have the info in front of me, but I believe it will eventually come out that Palin was trying to wean Alaskans off of FEDERAL tax money.
The Feds were attaching all kinds of strings to the Bridge To Nowhere money, so she finally said “enough” and sent it where it would be more wisely used.
The oil and gas tax increase was to give Alaskans the ability to survive and prosper in an inhospitable place.