I was going to ask the same thing.
Does anyone know what is the current royalty the oil companies pay to the state for Alaskan oil? Does it automatically adjust to the world price of oil?
I like Alaska's attitude that the oil belongs to the people of Alaska, and if the oil companies pump it they have to pay for it, which gives enough to run (largely? completely?) the state government along with distributing a check to every resident. This might just be getting the payment more in line with the increased value of the oil in the ground.
The Alaska tax seems similar to a windfall profits tax although it has a different name. I do not believe that the tax depends on the level of profits. I believe the tax is assessed on production levels.
I am not sure that the impact of the tax is much different than a windfall profits tax. Regardless of its impact, I am uncomfortable with the Alaska oil tax. The tax effectively makes Alaskan residents partners in the energy business when residents have no investment in these ventures. This tax (and the rat proposed windfall profits tax) are just legalized theft and destruction of property rights. I am sure that this tax is very popular in Alaska. Alaskans are just exporting the cost of their government to the other states with this tax.
I think that Sarah Palin would make a good VP choice but she will be dogged by this Alaska oil tax. I am not sure that the Alaska oil tax will be a significant issue in the election so I do not oppose choosing her because of her support for this tax.
What she is really saying is You can’t put a windfall profits tax on big oil because I am already doing it.