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ACES oil tax gets support from Conference of Young Alaskans

Meeting in Juneau, delegates oppose reduction sought by industry, governor

Posted: January 12, 2012 - 1:08am
Conference of Young Alaskans meet at Centennial Hall last week. The delegates voted to reject Governor's oil tax plans and said their top priority for Economic Resiliance and Fiscal Policy was to not lower oil taxes.  Michael Penn / Juneau Empire
Michael Penn / Juneau Empire
Conference of Young Alaskans meet at Centennial Hall last week. The delegates voted to reject Governor's oil tax plans and said their top priority for Economic Resiliance and Fiscal Policy was to not lower oil taxes.

Young Alaskans meeting in Juneau recently as an homage to the state’s Constitutional Convention more than 50 years ago gave a thumbs down to one of today’s hot issues, a proposal by Gov. Sean Parnell and oil producers to reduce Alaska’s oil taxes.

The 54 delegates to the Conference of Young Alaskans, brought together by the non-profit Institute of the North, debated and took stands on policy issues facing Alaska. That included the ACES oil tax issue that’s expected to be a hot topic during the legislative session that begins next week.

Some delegates cited the statehood effort of more than 50 years ago, spurred in part by a desire among Alaskans to control their own resources, as supporting their oil tax position.

Nathaniel Rubin, a West Anchorage High graduate now attending Yale, opposed the tax reduction.

“Our resources are owned by us, and are to be used for the benefit of us as a people,” he said.

The assembled delegates voted on a series of proposals involving economic resilience and fiscal policy, giving top priority to a plan to support the current oil tax system.

“Except for slight modifications based on research and knowledge, Alaska should maintain its current oil tax structure,” the delegates said.

Other proposals winning endorsement by smaller margins were support for developing Alaska’s Arctic infrastructure, boosting manufacturing, promoting Alaska hire, and increasing access and reducing the cost of electricity and Internet availability in rural Alaska.

Sam Gottstein, a Service High and Yale graduate now serving as a legislative aide for Sen. Bill Wielechowski, D-Anchorage, called Parnell’s proposed reduction in oil taxes a gamble with the state’s future that was too risky to take.

He urged support for the resolution against reducing taxes.

“We need to send a strong message to our leaders, since they claim they are doing it for us and our future,” he said.

The adoption of the resolution came over the spirited objections of a member of Parnell’s staff, Sonia Christensen, who said the resolution’s supporters were misstating the real gamble.

“I think we’re gambling now, every day, by not doing what we can to increase production and stem the decline of the pipeline,” she said.

Reid Magdanz, who graduated from high school in Kotzebue and is now a senior at Yale, used the Alaska Constitution to argue against lowering oil taxes.

“I strongly believe that as Alaskans we own our resources, we have the right to our resources,” he said. “North Slope oil belongs to Alaskans, it does not belong to the companies that extract it,” he said.

Christensen acknowledged oil exploration was thriving on the North Slope, but she said that was despite the state’s taxes.

“Its mostly because Alaskan representatives have been traveling outside Alaska and have been seeking out new business,” she said.

Juneau’s Elise Sorum-Birk was one of those urging the delegates, and the Legislature, to use the state’s current oil wealth to develop the economy by providing better education.

“Oil is not going to last,” she said. “That’s not something that is going to be able to sustain our children.”

Sorum-Birk grew up between Wrangell and Valdez, and currently lives in Douglas and works as a teacher’s aid at the Juneau Montessori School while studying for her geography degree at the University of Alaska Southeast.

Institute of the North Managing Director Nils Andreassen said the resolutions adopted by the board will be presented to the Legislature after the beginning of the session next week, and in person later.

The resolutions will be available soon on the institute’s website at www.institutenorth.org, and the deliberations are archived in audio and video on Gavel-to-Gavel’s website at www.gavelalaska.org.

• Contact reporter Pat Forgey at 523-2252 or at patrick.forgey@juneauempire.com.

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Latitude58
14491
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Latitude58 01/12/12 - 07:53 am
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Thank goodness

It looks like there's hope for our future.

JNUKara
8612
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JNUKara 01/12/12 - 09:00 am
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Smart young people

- exactly what Alaska needs!! WE get it, they get it - why doesn't Sean Parnell get it? He continues to to push for something that the majority of Alaskans do NOT want - why? Could it be he doesn't CARE what Alaskans want? Could it be he is "in bed" with big oil? I, for one, am sick of his condescending attitude that we Alaskans just don't know what we're talking about it, and should just do as he tells us with no questions asked. You picked the wrong state for that one, Parnell.

wolfmagic2012
2701
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wolfmagic2012 01/12/12 - 09:29 am
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Ditto that...

Our young folks aren't going to get grid-locked politically like the baby boomers have become. They're looking more with an eye toward solving problems, instead of making excuses, or perpetuating the current corrupt system. If anyone can get the money out of politics, it is our youth.

chipthoma
239
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chipthoma 01/12/12 - 09:41 am
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Kudos to CYA delegates

The Young Alaskans conference is an excellent example of how thoughtful people can assemble, discuss, and vote on issues of critical importance to Alaska. It appears that the CYA delegates voted in their largest majority against HB 110, Parnell's lowering of state oil taxes.

Should the Senate not vote on the issue this session, there should be a statewide advisory vote on the November, 2012 ballot of whether to endorse Parnell's rollback plan. An advisory vote would register Alaska support for an oil industry tax decrease and give the 2013 Legislature much better direction than the BP, Exxon and Conoco lobbyists.

Persnickety Persimmon
4173
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Persnickety Persimmon 01/12/12 - 10:09 am
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@wolfmagic2012: if the

@wolfmagic2012: if the hippies couldn't do it, I don't think our youth can (are we youth?).

We're bucked with a capital F, barring a revolution or upheaval of some sort (in which case we'll only have to worry about dwindling petroleum reserves and all the turmoil that'll cause given our complete dependency on it).

Calypso
6882
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Calypso 01/12/12 - 11:19 am
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This Conference of Young

This Conference of Young Alaskans makes for some great photo ops and all but in actuality, what do any of them know that's so special and why should anyone take their votes seriously?

All I see in this oil tax debate is emotion and selfishness and talk. There's no real data.

We should be seeing charts and graphs and so many numbers that our heads spin. If I was trying to sway someone to my side of the argument I have the statisticians working day and night to prove my point.

Right now it's just barbs being thrown back and forth and emotions and more talk, talk, talk.

chip, this would be a really bad thing to have on a ballot. The voters aren't informed enough and the deepest pockets with the greatest emotional sell (because from what I've seen, it's all about how much will end up in my wallet) would win. This is why legislators are elected - to represent us and to make decisions that'll move the state forward.

menden
0
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menden 01/12/12 - 11:22 am
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If I were one of these

If I were one of these younger Alaskans I would be urging the state to spend some of states money (a resource) today to clean up Alaska for future generations. This is using a Resource $$ for the maximum benefit of Alaskans. As a youth I would not want to have an environmental burden handed over to me. Right now the state can afford to address this, but maybe not in the future.

We need to stop dumping raw sewage in Cook Inlet for one thing, it is a public health issue and will only get worse. We need to tighten up toxic discharge laws for water, air, etc.. Not loosen them.

menden
0
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menden 01/12/12 - 11:26 am
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Look at the mining industry;

Look at the mining industry; we get 3% of this industries "net" take, plus a small lease fee.
What do Alaskans get in return? Our state gets the status of First Place in the nation for toxic chemical release. EPA just released the report. Is this what we want to hand over to our kids? A polluted state, where our wildlife are dieing, declining, filled with tumors and open sores?

CEO's of the mining industry put millions in their pockets, this is concentrated wealth from a public resource.

wolfmagic2012
2701
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wolfmagic2012 01/12/12 - 11:26 am
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PP...

Yah, you're probably right. I'm thinking of what our youth will be able to do in the aftermath... which means I am envisioning an eventual collapse of the economy (default), and some kind of re-set or restructuring of the economy worldwide. Hindsight after a scenario like that will be golden, and perhaps then an economy may be formulated that is absent much of the crazy corruption we see today, as with the derivatives and 700 trillion in lousy paper. I'm just sayin that I have much more hope and confidence in our youth to rebuild it all, than I do in the old guard, who has fallen asleep at their post.

menden
0
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menden 01/12/12 - 11:29 am
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Mining CEO's put millions in

Mining CEO's put millions in their pockets every year, this is concentrated wealth from a public resource. What do we get?

isldandhopper
2512
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isldandhopper 01/12/12 - 11:34 am
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daa

Jobs

menden
0
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menden 01/12/12 - 01:15 pm
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isldandhopper, we get a

isldandhopper, we get a pitty-potty amount of jobs from the mining industry.
Think of the "price" we pay for having this industry in our state. The pollution is huge, lost land, and these mega mining operations today dig up and take away these minerals for ever and ever. Minerals are non-renewable. Our kids will not have them. Todays mining compaines are stealing our resources, and polluting the environment for our kids.

AK Statesman
-1
Points
AK Statesman 01/12/12 - 01:00 pm
0
0

Soverieign roylaties are NOT TAXES FOR THE 1,000th time!

TAXES are paid by those who BUY sovereign oil from Alaskan oil producers. We don't tax producers one cent. They pay us royalties on the sale of our property, they get a cut. The only difference between Oil Producers and drug dealers is that drug dealers do not charge their end customers tax. Otherwise the distribution chain is about the same.

isldandhopper
2512
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isldandhopper 01/12/12 - 01:15 pm
0
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spoken

spoken like a true OCer, following information is avaiable at jedc.org
Juneau economic development council list top private employers 2009 & 2010 Greens Creek number 1 with 250-499 employees (latter 499 # likely accounts for sub contractors. It also ranked Coeur # 38 in 09 & # 7 in 2010 with 100-249 again the latter # is likely subs.
Soooo menden I'd those are pretty significant numbers.

Jo MacNamara
697
Points
Jo MacNamara 01/12/12 - 01:15 pm
0
0

Well done, CYA!

More voices of reason against our governor's $2 billion giveaway to his oil buds.

Keep up the good work.

Alaska can't afford a $2 billion/year giveaway, and there are no guarantees that those giveaways would translate into increased production or jobs. None.

menden
0
Points
menden 01/12/12 - 01:26 pm
0
0

islandhopper - EPA just

islandhopper - EPA just reported that Alaska leads the nation in toxic chemical releases. Not only this Alaskans have to deal with a Governor that works to gut regulations put in place to protect our health, our water, our air, and the health of our environment, health of our wildlife, etc...

We have an increase in autism, in breast cancer, lung cancer...look at our wildlife filled with tumors, we eat the wildlife, etc.... the cost the price we pay for discharging toxic chemicals today, and tomorrow.... Is it really worth these pitty potty job numbers?
How about the state invest in Alaskans, in a system where wealth is not concentrated by the 1% or in their polluting industries.....

What good is life when everything around you is dead or dieing? What will these kids doing when our minerals are all gone? Oil is gone? And all they are left with is a polluted state.

isldandhopper
2512
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isldandhopper 01/12/12 - 01:29 pm
0
0

menden

The vehicle you drive causes pollution, as does the groceries you buy to feed your kids (remember its towed up on barges)

Alaskastu
1651
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Alaskastu 01/12/12 - 02:00 pm
0
0

A few years ago we were

A few years ago we were second from the bottom for pollution from this type of thing according to the EPA. Then they said that ALL mine tailings are pollution, which is a straight up lie. After that policy change, we shot up the charts. Politics. Most stuff you call pollution is rock that hasn't touched any chemical that wasn't in the ground with it. Dig deeper before you take a stand against the mines that pump ALOt of money in or local economy. Oh and do you support oil in this state? How is that any different then minerals? And without that, how do you expect this state to survive? Keep pointing fingers but until you come up with a REAL alternative your just pissing in the wind.

isldandhopper
2512
Points
isldandhopper 01/12/12 - 02:34 pm
0
0

the

menden oh woh is me ohhhh wooooh is me, you forgot to mention testicular cancer. Me think me smells a SEACCer

isldandhopper
2512
Points
isldandhopper 01/12/12 - 02:52 pm
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0

Is it really worth these pitty potty job numbers?

Is it really worth these pitty potty job numbers? Really ask their families.

isldandhopper
2512
Points
isldandhopper 01/12/12 - 05:09 pm
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ArtV

Post happy or 3rd times a charm?

curmudgeon
323
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curmudgeon 01/12/12 - 06:22 pm
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Too many carpetbaggers!

@isldandhopper, far too many of the Greens Creek & Kensington jobs are going to carpetbaggers. I see them every week at the airport. If someone wants to work at these mines they ought to move here.

The payroll being exported out of Alaska by the miners and oil workers should be staying in our economy, not being exported to Montana, Colorado, & Idaho. We should reinstitute the state income tax to capture some of that money, and all oil & mineral leases need to require local hire.

isldandhopper
2512
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isldandhopper 01/12/12 - 06:56 pm
0
0

big picture

Curm, I don't doubt there are a number of out of state workers, but its a very very small number. & Just them passing thru the airports generating revenue. Revenues in the form of sales tax airport taxs & fees, not to mention those jobs created by all that flying. (To & from perhaps Sitka Ketchikan or maybe a smaller community on wings or ward air. Dang carpetbaggers anyway)
But since i happen to personally know more than a few workers at both mines I'll ask & post tomorrow, although it'll be a irreverent post to the subject article & may get empires.

Latitude58
14491
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Latitude58 01/12/12 - 07:39 pm
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0

@Stu

"Most stuff you call pollution is rock that hasn't touched any chemical that wasn't in the ground with it."

Now THAT is one pathetic argument. So it's not pollution if it just came out of the ground, eh?

How about I come to your house and dump some freshly mined lead around it? (never been touched by another chemical) Or cadmium? Asbestos, perhaps? Hey, why not crude oil? How about I dump some fresh crude in your front yard - it just came from the ground.

isldandhopper
2512
Points
isldandhopper 01/12/12 - 08:20 pm
0
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things that come

Littledude85 you couldn't be whining now if we didn't take things from the ground, geez what a dope

Calypso
6882
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Calypso 01/12/12 - 09:30 pm
0
0

Littledude85 - now that's

Littledude85 - now that's laugh-out-loud funny!!

Persnickety Persimmon
4173
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Persnickety Persimmon 01/13/12 - 10:10 am
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@isldandhopper: so you're

@isldandhopper: so you're saying there's no difference between strip mining the land and taking resources with reckless abandon and doing it safely and with discretion?

Geez, what a dope.

At least we know you're not an industry shill. They usually have a faint idea of what they're talking about.

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