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Grassroots group forms in opposition to Parnell's plan to rollback oil taxes in Alaska

Posted: August 24, 2011 - 8:42pm

JUNEAU — A grass-roots effort has formed in opposition to Gov. Sean Parnell’s plan to slash oil production taxes in Alaska.

Alaskans United to Stop Our Oil Wealth Giveaway is meant as a counterweight to the Make Alaska Competitive Coalition, a group of businesses, organizations and individual Alaskans seeking changes in the tax scheme.

Bruce Gazaway, who works in food safety, said Wednesday that the new group arose from a kitchen table conversation he had with his brother, Hal Gazaway, an attorney. Bruce Gazaway said he believes the current tax structure, known as Alaska’s Clear and Equitable Share, or ACES, provides a “pretty fair share” both to producers and Alaskans. He said he opposes what he considers to be a “gross giveaway,” proposed by Parnell, but said he personally is open to tax rate adjustments.

The current structure, passed under then-Gov. Sarah Palin, features a 25 percent base tax rate and a progressive surcharge triggered when a company’s net profits hit $30 a barrel. It also includes tax incentives. The idea behind it was that the state would help companies with credits on the front end and share with them in the good times, when oil prices were high.

Critics, including the major oil companies in the state, contend the surcharge eats too deeply into their profits and discourages new investment in Alaska.

Parnell proposed changing how the surcharge is calculated and capping it, as a way to boost investment and now-declining production. The proposal passed the state House earlier this year but stalled in the Senate, where leading lawmakers said they didn’t have the information needed to make a sound policy call.

The issue is expected to come up during the next regular session, which begins in January.

Bruce Gazaway said at this point, his group is working to find out “who our allies are,” to grow support and build momentum. He doesn’t envision the group running TV ads, as Make Alaska Competitive has, but rather sees it encouraging like-minded citizens to lobby for a fair tax — talk to their representatives, write letters.

The group was mentioned in a recent newsletter by Alaska Democratic Party Chair Patti Higgins, but Bruce Gazaway said it is a nonpartisan effort.

“I want to find folks of both faiths, if you will, that support a fair share for the citizens of Alaska,” he said.

Parnell told reporters Wednesday that he welcomes the group to the debate but said the state needs plans for getting more oil into the trans-Alaska pipeline not less.

The governor suggested the group’s name, given its position, could well be “Alaskans United to Lock Up Alaska.”

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catandmouse
687
Points
catandmouse 08/25/11 - 09:22 am
0
1

Parnell is from California, hes not an Alaskan.

Why in the world are we putting up with him?

Parnells home state is California, he has worked as an attorney representing the oil industry and Parnell continues to work for the oil industry but now hes doing it from our Governors house.
Alaska's Governor takes a vow to represent Alaskans. But Sean Parnell works to block Alaskans from having a voice on Alaskan issues.

We need to Fire Sean Parnell.

MagicsJohnson
-7
Points
MagicsJohnson 08/25/11 - 08:38 am
0
0

Capt Zero Corrupt to give away $8 billion

BIG difference between supporting profitable and careful oil development for our benefit and with strong safeguards, and supporting Big 3' efforts at oil grand theft and exploitation.. with the help of some pretty awful, and oily, politicians, subcontractors, union hacks, and people sadly influenced by lobbyists (starting with the current governor) and industry pr and propaganda.

Jo MacNamara
697
Points
Jo MacNamara 08/25/11 - 12:34 pm
0
0

$2 billion year = $20 billion/decade

Do the math!

$2 billion/year tax giveaways to the oil companies will do nothing to raise enough jobs or boost production to account for that $2 billion 'investment.'

It is nothing more than a giveaway from our republican Governor to his republican friends in big oil, to the detriment of all Alaskans.

ACES is working. Leave it alone!

It doesn't matter WHAT the tax rate is on oil, big oil will always complain and try to make it lower. ACES is fair for both.

And it's OUR oil. We can tax it however we want.

wmolson
4515
Points
wmolson 08/25/11 - 01:18 pm
0
0

I have a long time lack of understanding

I know that in the dictionary there are many definitions of "development." But I have trouble distinguishing that from "exploitation," or "taking and using all of the resources now, and we don't care what we leave behind for future generations."
For example, I live in the Tongass Forest area. I don't quite understand how clear cutting huge parts of the old growth forest that will take centuries to again become an old growth forest with its special ecosystem is "developing" it.
I don't see how taking oil that took millions of years to accumulate and letting companies sell it for profit, is "development". To me in my naive way, the difference between development and exploitation for profit seems to be getting to the point that if we don't take all we can get now, make as much profit as we can right now, then some call it "anti-development."
Maybe I just don't understand "capitalism" and the idea that profiting some individuals or groups is "development." Or that having all people share in the benefits of the use or taking of resources is an abhorrent evil called "socialism" or social justice.
I guess that I will just have to explore the concept of development.

constanfq
0
Points
constanfq 12/01/11 - 01:02 am
0
0

There are definitely a whole

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