Every Alaskan to get $1174

ABC ^ | September 20, 2011 | AP

[SMGFan]

Most Alaska residents will soon be getting a check for $1,174 simply because they live there.

Each person's share of the state's vast oil wealth was announced with much fanfare in Anchorage Tuesday, with Gov. Sean Parnell ripping open a gold-colored envelope to reveal the number. This day is so widely anticipated in Alaska that the announcement of the Permanent Fund Dividend amount was carried live on television statewide, and dozens tuned in to watch a live webcast by the governor's office.

[SoJoCo]

For instance we could lift the great lakes drilling ban and great eliminate state taxes in the great lakes states to spur business.

If taxing the heck out of oil companies is a spur to drilling then the U.S. should raise the taxes they levy?

[Eska]

My 556 AR's never leave the vault anymore; for the grandkids if they ever need them down the road.

I bought a stag carbine 6.8 spc 2 years back. Put a 4X32 horse shoe/red dot acog on her and have killed caribou out to 550 yards with that gun & scope; just takes a little practice. Great for on atv & snowmachine with that 8 dollar blackhawk sling from midway. We have shot wolves, bear, and bou with that gun. 29 grains H322, 110 Barnes triple X.

This Spring picked up AR-10 in 338 federal, kinda heavy but will kill about anything.I have a 3.5X35 horse shoe acog on that one too. I'm much more satisfied with those horseshoe acogs than any of my VX-3L's with turrets. I'm going to kill one of our local grizz with that gun. Killed both moose with it this year. Second moose the wifey got, one 250 grain nosler part into the lungs and that bull did the 3 side step shuffle and dropped hard in the ditch; easy to quarter & load in truck.

I luv those acogs for hunting, quickest scopes I have ever owned and can be bought for around $1000. It's pull up bang with them,,, I'm a shooter not an aimer.

I have as many guns as you all do too, but those AR's and my 30-378 weatherby are my favorites.

I'm musing about a 30-378 with cut down 20 inch barrel & a magpul collapsible stock, so I don't smack the trees down narrow trails. I guess my PFD will give me a down payment,,,, how nice glad I live in Alaska.

[cripplecreek]

Bout as sharp as a bowling ball aren’t you?

[redhead]

Whoopee. The PFD’s are dividend payouts on investments. And they are only paid once a year. Most people wind up paying bills with the money. Last year’s dividend was over $1,200. Thanks, O.

[redhead]

"In fact, I think other states, every state, should pay its state resident citizens to live there."

This payout is NOT for "living here." It is is payout of DIVIDENDS on oil investments made in the name of the People of Alaska. One $1,000 check a year is hardly enough compensation for the high living costs.

[redhead]

Dood...that is one seriously BIGASS ‘boo!

[Eska]

Ya, my daughter got a nice one there, early in the season we always see the double shovels but they get shot off pretty quick. She shot that bull like 5-6 times with 6.8 stag carbine, 110 barnes X bullets. He stood there taking them like a bug bite; finally went down. Funny thing is I shot several last season with same 6.8 and they went right down. I saw another double shovel last week but we already got our tags filled. I like killin them as much as the nx guy, but ain't a hog about it. We are hunting the 40 mile migration. What caribou do you guys have downriver?

We saw a nice over 60 couple days back but couldn't get a shot, heard him in the woods, couldn't call him in, man hate those sharp bulls. I was down tonight with buddy that still had a moose tag, had a nice bull with cows in sight but way off and they didn't cross at dark where I thought they would. Our subsistence season goes until the 25th in fed areas; the only thing the feds have ever done good. We have low moose numbers here at the end of the Taylor, not moosey country.

Big "E" (what I call him) works for BP up slope on here, got a couple bulls downriver. I saw him on road and we talked but not politics, just moose ha.

[SoJoCo]

Bout as sharp as a bowling ball aren’t you?

Apparently sharper than you. At least I'm aware that all this money Alaska is giving out and all the money you want to collect for drilling in the Great Lakes comes from taxing the companies doing the drilling.

[cripplecreek]

No actually you’re a moron or a really bad psychic. After all you never explained how you know what I’m thinking.

Don’t bother, I doubt you’ll be around here long enough for it to matter.

[thackney]

It might sound like just semantics, but the PFD is strictly from a portion of the royalties and the investment of those dollars.

The taxes like ACES, or the previous PPT, and the corporation taxes and the oil/gas property taxes all go directly to the state government to support their spending. Those dollars have never been part of the PFD.

[SoJoCo]

It might sound like just semantics, but the PFD is strictly from a portion of the royalties and the investment of those dollars.

So then we change 'Federal taxes' to 'Central Government Royalties' and everything is alright? One way or the other, it is a governmental body taking money from the corporation in order to allow them to do business. It's a tax by another name. Taxes do not encourage companies to do business, and the idea that taxing companies to get them to drill in the Great Lakes promotes business is ridiculous.

[Eye of Unk]

I have a project this winter, to build a hunting buggy down here in Wasilla. I may start with a 1992 crew cab Ford, I have tons “literally” of old Rockwells with gears around 6-39 or so, nice low gear stuff so I can use dual tractor mud tires.
As for the engine I have quite a few diesels from some older GM 4 cycles out of a 2 ton cabover to some Detroits even.

In case you havn’t been down here in the Valley its the latest craze to build the best hunting buggy all around the valley.

[thackney]

Royalties are paid everywhere. Whoever owns the mineral rights is always due compensation for selling those minerals. That is a royalty payment.

In Alaska, there are not private ownership of mineral rights, they are owned either by the State, the Feds or the Native groups.

I own mineral rights privately in the lower 48. If someone wants to produce my gas or oil, they have to pay me for them.

If someone wants to produce the oil or gas in Alaska, they need to pay the owners of that oil or gas. In Alaska, those owners are the state.

It is a different thing than the multiple taxes placed on top of purchasing the rights to produce the oil and gas.

It not taking from the profits, it is selling the rights for production, otherwise it would be theft of the oil.

[SoJoCo]

It is a different thing than the multiple taxes placed on top of purchasing the rights to produce the oil and gas.

Nonsense. It is a fee levied by the government which adds to their cost of production, just like any other tax. And the oil company does not pay it out of the goodness of their heart, or willingly take a hit to their profits to cover it. They pass it on the their customers, same as any other tax.

And in this case the state of Alaska then takes that wealth from the oil companies and transfers it to their population by cutting a check that the people don't have to do anything for. In my state, the government takes wealth from companies and individuals and then transfers that wealth by cutting a check to a welfare mother who doesn't have to do anything for it. Why is one good and the other bad?

[thackney]

Name one place in the world that doesn’t charge royalties for producing their oil?

Alaskan Royalties are typically around 12.5%

http://capcp.psu.edu/Alaska/index.html

They are far from being oppressive.

However, the additional taxes they have piled on top of the royalties are excessive. And they are not part of the PFD.

In your state, what is the going rate for oil royalties?

[redhead]

"What caribou do you guys have downriver?"

I don't hunt (old lady with lung problems) but I believe the herd that goes through the area is the Porcupine herd. I could be way wrong, and welcome any correction from someone who KNOWS.

I wondered why I hadn't heard anything from Big E in so long. (We call him Mo, for some completely unknown reason. LOL!) Glad he got something. Anyway, congratulations on the success.

[SoJoCo]

Name one place in the world that doesn’t charge royalties for producing their oil?

And that makes taxes OK? Calling them royalties? What if New York charged royalties for every stock transaction at the NYSE?

They are far from being oppressive.

But I'd be willing to bet that the average oil company didn't pay 12.5% in federal taxes. Yet we talk about the need to do away with taxing the job creators in order to spur hiring. Imagine how many jobs might be created in Alaska if they didn't pay a 12.5% tax to the state?

However, the additional taxes they have piled on top of the royalties are excessive. And they are not part of the PFD.

Cut the PFD and that tax burden goes down by 12.5%.

In your state, what is the going rate for oil royalties?

In Kansas any royalties for mineral rights go to the owner of the property and not the state. So we don't tax the companies to distribute the wealth here.

[Eska]

I’m sorry, got you mixed up with redpol I do think; or maybe not. Did you build a fruit cellar just a year back or so?

[thackney]

I am sorry you are incapable of understanding the difference between taxes and royalties. Owners of mineral rights are permitted to sell those minerals. They should not be required to give them away for free.

What if New York charged royalties for every stock transaction at the NYSE?

There is a big difference in taxing a transaction that happens in your jurisdictions, and selling a resource.

But I'd be willing to bet that the average oil company didn't pay 12.5% in federal taxes.

Don't bet too much of on that.

ExxonMobil income tax rate alone was 40.7% in 2010.

http://www.exxonmobil.com/Corporate/Files/news_pubs_fo_2010.pdf
Summary Statement of Income, Page 22.

In Kansas any royalties for mineral rights go to the owner of the property and not the state.

No, not the owners of the property (surface) but the owners of the mineral rights, same as almost everywhere.

http://www.kgs.ku.edu/Publications/Oil/primer11.html

In Kansas, you can sell the property and retain the mineral rights. Which is what the state of Alaska has done for the State land, they have retained the mineral rights. The natives retained their mineral rights and the feds retained their mineral rights.

When I owned property in Alaska, the state still owned the mineral rights. Just as in Texas, the property I own was once part of a larger ranch, that family retained the mineral rights when the subdivision was created.

Oil that is produced in Alaska from Native Lands or on Federal does NOT contribute to the dollars that go to the permanent fund. It is only the oil produced from the state owned mineral rights that contributes, not all oil produced in the state.

[SoJoCo]

A tax by any other name is still a tax. And taking money from business and giving it to anyone living in the state is still wealth distribution, regardless of what you want to call it.