Oil Industry Says Tax Cut Not Enough

Executives tell senators tax proposal still too high

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By Bill McAllister
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Story Created: Mar 5, 2013 at 4:47 PM AKDT

Story Updated: Mar 5, 2013 at 6:14 PM AKDT

ANCHORAGE - Oil industry executives told state senators today that the tax cut bill they're considering is a step in the right direction -- but is not enough.

North Slope producers and a trade group testified that they are happy to see the proposed elimination of progressivity -- the sharp increase in the state's percentage take of company profits at high per-barrel prices.

But they said they object to the increase in the base tax rate from 25 percent to 35 percent of profits.

“We don't believe that the bill in its current form would be enough to change investment behaviors in a manner that we think you're expecting," said Kara Moriarty, executive director of the Alaska Oil and Gas Association.

A spokesman for BP Alaska refused to answer a senator's question about whether it would be better to retain some progressivity rather than risk having the entire tax revisited should a world crisis push oil prices to a record $200 a barrel.

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taxman said on Tuesday, Mar 5 at 7:02 PM

tell them 35% is better than 100%. run them off unless it's like 5% they will complain and stall. run BP off before they kill again.

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