Oil Industry Says Tax Cut Not Enough
Executives tell senators tax proposal still too high
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.
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.