It is like ....
A capital gains tax for oil or better yet .... inflation protection for the state’s long term contracts.
I don’t see anything wrong with it as long as the percentage is fixed or the percentage increase is very small.
I don’t know the details of what she did....makes me want to sign up with the WSJ just so I can read the rest, but I can find the details other places.
The government needs to run more like a business. A Business wouldn’t enter a long term agreement (Multi-year) fixed price contract without some variable to be considered in the price for the items/services.
The fact that she did this..just means she is smart....how she did it determines if she is a socialist or a free market capitalist. I make no judgment either way on this topic.
The article is from September, 2008 and you can read it by simply clicking above where it says *continue reading*.
http://wizbangblog.com/content/2008/09/02/an-introduction-to-sarah-palinomics.php
You may have heard that Sarah Palin raised taxes on oil companies in Alaska when she was governor, but what most people don’t know is how economically smart her tax plan was. In a nutshell, here’s how it’s structured: when the oil prices are high, the tax is higher; when oil prices drop, the tax drops. It provides an incentive for the oil companies to keep oil production high, which keeps oil prices and, therefore, gas prices low. It’s very smart. More from Cary Wesberry:
Former state Representatives Pete Kott and Vic Kohring have been convicted taking bribes from oil company executives in Alaska. Using the oil profits tax passed in 2006, these politicians literally used their offices to steal money from the citizens of Alaska. Governor Sarah Palin would have none of it, and set to work to correct the problem and return that money to Alaskan residents...
Governor Palin did what any conservative worth their own soul would have done. She gave tax dollars that were literally stolen from Alaskan taxpayers right back to them and appropriately reversed corrupt tax policy. Not only did she bring ethics back to the tax policy in regards to the oil industry in Alaska, she improved the policy itself in her proposal.
The tax raises when oil prices are high, and falls when oil prices are low. This give amazing incentive for the oil companies to produce more oil, which increases supply, and lowers prices for everyone including the taxes they themselves pay the state. When oil prices are low the tax moves to a 10 percent tax on the gross, instead of the net tax of 25% when prices are high. Instead of, not in addition to. The oil companies in Alaska with the Palin proposal pay the state minus their operating expenses along with pipeline and tanker charges. In this way, the oil companies are not taxed for the cost of doing business.