Governor Pushes Tax Rollback

Parnell claims that the changes are needed to encourage investment by producers in Alaska.

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By KTVA Sean Doogan

Story Created: Mar 30, 2011 at 7:40 PM AKDT

Story Updated: Mar 30, 2011 at 8:32 PM AKDT

They have dominated discussion in the halls of the State Capitol for weeks, and today, oil taxes were the hot topic in Anchorage.

Governor Sean Parnell headlined a State Chamber of Commerce luncheon today aimed at increasing public support for his proposed roll backs of the state’s tax structure for producers.

Parnell claims the changes are needed to encourage investment by producers in Alaska, and he rallied support among the 700 or so industry advocates and others who showed up at the Dena'ina Center Wednesday.

But not everyone sees it that way.
Representative Les Gara, an Anchorage Democrat, says he believes the Governor’s plan amounts to nothing more than a 2-billion dollar annual giveaway to oil companies.

Gara says the state should only give tax breaks to companies that use the money to explore in Alaska.
“In fact, we know, from Alaska’s history that when we have had low taxes, companies have just sent their money out of state," according to Gara.

The Governor claims history is on his side, and insists that history shows lower taxes mean more investment.
“Just like we did with the cruise industry when we reduced taxes, just like we’ve seen in Cook Inlet when we reduced taxes and provided incentives," Parnell said.

Meanwhile, in Juneau, Senate President Gary Stevens, a Republican, says he doesn’t believe the governor’s tax change bill has been fully explained and doubts it will see a vote on the full Senate floor this session.

For his part, Governor Parnell says with just 18 days left in the Legislative session, there is still time to make the changes, and claims if they don’t work, the tax structure could be re-tooled in four years.

Most agree, with fewer barrels of oil coming down the Trans Alaska Pipeline each year, the state’s future depends heavily on what is happening right now.


 

 

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