House Vote on Parnell's Oil Tax Plan Expected

Gov. Sean Parnell and supporters say such a move will address a stranglehold current taxes place on oil companies, particularly at high oil prices.

Tools

By Fairbanks Daily News-Miner

Story Created: Mar 31, 2011 at 10:03 AM AKDT

Story Updated: Mar 31, 2011 at 10:03 AM AKDT

 JUNEAU — Both sides are gearing up for an expected House vote today on proposed cuts to oil taxes.

Gov. Sean Parnell and supporters say such a move will address a stranglehold current taxes place on oil companies, particularly at high oil prices. Skeptics asked colleagues today to consider the potential downside — a major cut in taxes that could have only marginal benefits.

Democratic Reps. Les Gara of Anchorage and David Guttenberg of Fairbanks pointed to fresh state analyses they say suggest the cuts would cost state government billions of dollars “even if future oil production increases.” They said all signs show it will amount to a net loss to state coffers.

“This bill fails if it works. And if it doesn’t work, and we’ve not heard any reason to believe it will, then it’ll cost billions more,” Guttenberg said in a statement. He and Gara said targeted tax breaks for companies that drill here would better address state concerns.

The House Finance Committee cleared the multi-pronged tax plan late Tuesday. The panel voted 8-3 to advance the measure to the floor, although members’ recommendations carried a tighter margin: 6-3, with two members withholding recommendation. 

Parnell applauded committee members, saying by statement late Tuesday they “acted to keep the conversation going about how to grow our economy and creating opportunity for Alaskans.”

The House is set to meet today at 10:30 a.m. 

Contact staff writer Christopher Eshleman at 459-7582.

Read more: Fairbanks Daily News-Miner - House vote on Parnell s oil tax plan expected 

Add a comment

Name:

Comment: 1000 Characters Left

KTVA CBS 11 | Anchorage, Alaska News and Weather and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the above comments or other interaction among the users. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any Public Forum.
This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.