New Oil Tax Proposal Lowers Base Rate
Senate Finance Committee bill still eliminates progressivity
ANCHORAGE - In Juneau, the Senate Finance Committee has unveiled a new version of a bill to reduce oil production taxes.
Senate Republicans say their aim is to keep the tax rate percentages stable, in part by eliminating the progressive feature that makes the tax go higher when the price of oil goes up.
"I personally have been sold on the idea that it is imperative for Alaska to move to a system where we have a more flat rate of tax that is more predictable over a gamut, a cross-section of prices that industry all across the globe can understand and digest easily,” said Senator Lesil McGuire, R-Anchorage.
Democrats continue to insist that tax breaks should be tied to investment in Alaska for new production.