Posted on 08/22/2011 8:17:41 AM PDT by The Bronze Titan
Oil companies in Alaska are paying more money in taxes than ever before. The state's oil and gas tax revenues for its just-ended fiscal 2007 topped $10 billion. That's twice as much as fiscal 2006 and four times more than 2004. Some supporters of Barack Obama see that money coming in and say that John McCain's running mate, Alaska Gov. Sarah Palin, must have done what Sen. Obama wants to do -- sock those companies with a big fat windfall profit tax. This is a deeply misleading reading of her 2007 tax reform.
...continued HERE.
(Excerpt) Read more at online.wsj.com ...
Two were from AP, three were from Journalists and publications in Alaska.
Here are some more from Alaska:
Legislators question ACES oil tax hike
http://community.adn.com/node/145785
December 4, 2009
Speakers decry ACES, teach business owners how to get involved
http://alaskajournal.com/stories/012111/loc_ddatb.shtml
January 21, 2011
Oil industry launches ad campaign calling for oil tax reduction
http://community.adn.com/adn/node/147352
January 25, 2010
Oil producers say investments unsustainable under state’s production tax
http://alaskajournal.com/stories/022511/loc_opsius.shtml
February 25, 2011
ACES oil tax will ultimately take economy to the brink
http://www.adn.com/2011/04/02/1789405/aces-oil-tax-will-ultimately-take.html
April 2nd, 2011
ACES tax system shuts Alaska off from investments by the oil industry
http://www.adn.com/2011/03/25/1776047/aces-tax-system-shuts-alaska-off.html
March 25th, 2011
Tweak ACES to ensure Alaska’s future is strong
http://alaskajournal.com/stories/040111/opi_taeaf.shtml
April 1, 2011
Two easy ACES changes could ensure future oil production
http://www.adn.com/2011/08/19/2023050/two-easy-aces-changes-could-ensure.html
August 19th, 2011
ACES backers blind to facts about need to reform tax
http://www.adn.com/2011/08/20/v-printer/2023914/aces-backers-blind-to-facts-about.html
08/20/11
As the lower 48 and Canada has been oil industry booming in many area with US total production starting to climb, Alaska has lost jobs and production in the same time period.
Not in the Alaska Division post 2007.
And do you understand that if the governor raises taxes too high then the checks going out to people are going to go down?
This is different than telling people that they’ll have to fire teachers and firefighters, or that they streets will be less safe.
If it is cheaper for the oil companies to develop fields in places other than Alaska, then they will do that, and those checks will go down.
If, however, the oil company is squeezing their partner, as oil companies are sometimes wont to do, then their bluff will be called and they will stay.
Shell sent an ‘expert’ out from the UK on the price of water in order to make a case to a local WA mayor on getting a cut in the rate. The rate was already the lowest in the US, but they sent someone out to ask anyway.
After three days, and threats that they could build a refinery elsewhere (the Mayor laughed the guy out of the room, since his dad used to manage the plant in question and knew a little something about getting an EPA air permit in the US), the wormy little Brit ended the visit with, “Please don’t send me back empty handed. Can we get just a token cut in the rate?”
Either the tax is too high, or the oil companies have the opportunity to develop fields cheaper in other places. Since there are now incentives on ALL SIDES (company, taxpayer, and government) I have faith that the market there will find the right price.
I’ll tell you this. The government’s interests and the taxpayers interests are not aligned here. If this were any other state, that alignment would be irrelevent, but it isn’t here.
Here in WA state, they just tax you out of business and nobody sheds a tear. Boeing is gone. Once the 787 is up in SC, they will produce government aircraft here in this state and send all their commercial stuff to right-to-work states.
In AK, the taxpayer is also a shareholder receiving a dividend.
Can government screw it up in AK? Absolutely. I just think it will be a little harder than in other states.
About 25% of the oil Royalties goes to the Permanent Fund, about half the income of the fund plus their share of the oil royalties is then paid out to Alaskans. The rest is put back into the Fund to keep it growing.
None of that has anything to do with the ACES tax plan implemented under Governor Palin. That is a tax on the profits after royalties and other approved expenses are paid. That tax is not redistributed, only the portion of the royalties.
I am laughing that my reminding Palin supporters to bookmark this information is a fly in the soup of the The Link Boy, with his dozen Democrat AP and Drive-by Media links.
This is a state issue. If Alaskans do NOT want this, then they are free to elect representatives to repeal/change that law. As a resident of Texas, I have ZERO say in what Alaska does.
Personally, I think it's a good idea for the state to direct these funds to individuals rather than to use those funds for congresscritters' pet projects.
The current Governor is trying to lower the taxes, not raise them.
The checks to the people are not from the taxes but the royalties. The royalty payment was not changed under Governor Palin. ACES changed the tax rate after royalties are paid.
Either the tax is too high, or the oil companies have the opportunity to develop fields cheaper in other places.
That is what happened. After ACES went into effect, projects were canceled, investment capital was reduced and other areas like Canada, Texas and North Dakota gained investment dollars from the same companies. People like me in the Alaska oil patch left for other location more inclined to work with business instead of trying to choke the golden goose.
In AK, the taxpayer is also a shareholder receiving a dividend.
Don't confuse the royalties with Taxes. They do effect each other, but the tax is not distributed.
Actually, I don't think I was explaining it clearly. Yes, you're absolutely correct, they are two different revenue streams. One is not manageable, the others are. I was referring to those that are manageable as you mentioned.
How about Petroleum News, an Alaskan Publication for the oil industry?
Parnell wants ACES cap
http://www.petroleumnews.com/pntruncate/963891743.shtml
ACES: more bad than good
http://www.petroleumnews.com/pntruncate/857057610.shtml
ACES on the hot seat in House Resources
http://www.petroleumnews.com/pntruncate/300912136.shtml
I worked in the Alaskan Oil patch when this went into effect. I had projects at my company canceled by the oil producers due to the increased taxes. I left for Texas where the business there was growing while the Alaska business declined. I hired people I worked with in Alaska to now work for me in Texas.
You can belittle articles without reading them. You can criticize the sources without addressing the substance. But Alaska has declined its oil work force and is starting to really worry about its future under the current tax plan.
Truly jaw dropping Maybe she and Jimmy Carter could compare notes.
BTW...I work in the oil industry, too, and there are many of us conservatives in this industry who do not view her as a friend.
What aspect of ACES is driving them out?
OMG... I have read this thread, and the Palinites are basically calling the WSJ a leftest liberal rag. This funniest s___ I have ever read in a long time.
The tax rate at realistic prices.
People want to say it only raised from 22.5% to 25%. But that is only the minimum base rate and they lowered that cutoff to $30/BBC. Tax rate increments up more than double that depending on the oil price.
BBL not BBC
Dang autotext
Lol, you need to read the posts you are responding to more carefully. My post #68 did nothing but copy part of the article and restate how oil revenues are paid the citizens of Alaska. Absolutely no comment about whether that is good or bad, positive or negative.
But you sure found something in a simple statement of facts that set you off.
I told you I read your garbage links.
You are a cheap spammer of Democrat Media links. Your act that there is no Democrat Media in Alaska is funny.
You started with 11, then 9 more and now another 3. No wonder you are mental about me simply saying to bookmark this information.
People have lost jobs all around America. It is kind of hard for people to buy a product (like gas/oil) when there is no pay-check.
Find a link for that Spammer Link Boy but please don’t start crying about it.
Alaska Journal of Commerce and Petroleum News are Democratic News links? And articles by Paul Jenkins?
Alaskans are laughing at you.
The Daily News certainly leans left but these other claims oy shows how little you know their writing.
Thanks for the explanation.
Royalties are fluid and change over time. It’s give-and-take (just like any business arrangement) but the state (hence its citizens) has a right to those royalties under its state constitution.
So the critics (who didn’t seem to mind before Palin entered the scene) can snipe and gripe all they want....but ACES, in some form, is here to stay.
A few out of 22 links?
You linked to AP who had 11 “journalists fact check” Palin’s book. LoL!
The people laughing here at you are all the true Conservatives.
Add to that the Republican establishment is against Palin also.
You are the funny one, but in a sad way.
Let me make this clear for you:
The is a HUGE economic problem with many people who have lost their jobs, not just you. In difficult times people buy less of everything.
Your crybaby BS would only make sense if the American economy was doing great or at least average and yet things were still bad for the Alaskan oil workers.
How could you possibly not understand that?
Enough with you.
I was posting to “Palin supporters”, not crybabies led by the nose from the MSM and who spam links for them.
I don’t need a link to tell you that. But I am sure you have another dozen from the MSM lined up and ready to go.
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