Alaskans Out There: Via Senator Bill Wielechowski: Reason #1 to Repeal SB 21, the Oil Wealth Giveaway Governor Parnell claims this massive giveaway will spur increased oil production. This is his primary rationale for funneling roughly a billion dollars Alaskans would have received each year to Exxon, BP and other multinational oil companies. However, this strategy has been shown to be ineffective in Alaska and elsewhere. For 30 years, production taxes in Alaska were minimal. As recently as 2006, 15 of 19 North Slope oil fields paid zero production taxes. Yet oil production dropped 55% from 1988 to 2005. Lower taxes did NOT lead to more production. In fact, low taxes led to 1.15 million fewer barrels per day in oil production, roughly twice today’s production level. SB 21 takes us back to a failed philosophy that has already cost Alaskans billions upon billions.
Posted on: Tue, 20 Aug 2013 06:27:09 +0000
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