Alaska Battles Over How Lifeblood Oil Is Taxed

[Judi Lynn]

Source: Associated Press

Alaska Battles Over How Lifeblood Oil Is Taxed
by The Associated Press
JUNEAU, Alaska April 1, 2011, 01:06 am ET

A high-stakes political battle is being waged in Alaska over whether to cut oil production taxes, an issue that could determine whether the trans-Alaska pipeline keeps pumping billions of dollars into the state's coffers.

On one side are Gov. Sean Parnell, top House Republicans and the oil industry, who argue that the current tax structure is stifling investment and must be changed to boost oil production and avert a now-looming shutdown of the pipeline that carries at least 10 percent of the nation's crude oil production, on average.

On the other side are House Democrats and leading senators, who say the Parnell administration hasn't justified the need for tax cuts and credits that could cost up to $2 billion a year, and they question what — if anything — the state will get in return.

Companies have not committed to any new investments if the bill is passed but have said they see the proposal as a step toward making Alaska more hospitable to business.




Read more: http://www.npr.org/templates/story/story.php?storyId=135030800

[orwell]

1. Yeah that's the problem...

...the poor wittle oil companies need a "more hospitable" environment.

With those miserly oil depletion allowances, sweetheart tax deals, and gas at $4.00 a gallon, it's a wonder they can even keep the lights on...

[yurbud]

2. they're going to turn off the pipeline? I doubt it.

[PJPhreak]

3. "On one side are Gov. Sean Parnell, top House Republicans,and the oil industry"

Can Suck my ass!

[Arctic Dave]

4. It is not very likely this will pass.

The more moderate rupugs aren't really enthusiastic over it and the likelyhood of it passing the Senate is slim to none. But, you never know what the industry shills have up their sleeve.

[Bandit]

6. The House just passed it with plenty of votes to spare

It is up to the Senate now and I would not hold my breath..:shrug:

[Arctic Dave]

7. Yeah, the house was a for sure. The Senate is a whole other story.

[Bandit]

5. The most profitable industry in the world..EVER..needs the state to give it money because

Record Profits are just not enough incentive to keep making record profits. They need the Government to give them millions as well..Two billion dollars a year the Governor wants to give the industry in tax cuts while cutting education spending and highway spending and child health care spending. If they were to take that money and distribute it among ten thousand small business (Two hundred thousand per business) they very well might create new jobs and benefit the economy, but giving it to the oil industry with no guarantees a single job will be created seems very Republican if you ask me..