Jim Tester, wrote Alaska Daily News May 27, 2004: "Alaska Democrats are asking for higher taxes on oil produced in the state because the oil companies are making record profits. If this were to pass, it would only result in even higher prices at the pump. liberals don't seem to understand basic economics or, perhaps, hope that we don't." Well, it would appear the liberals have got it right, this time. To introduce an added windfall profits tax, to rake back to the state some of the extra profit being made by the oil companies, in no way adds to the original cost of production. It merely reduces the amount of profit left in the bank accounts of the oil companies and thus reduces their shareholder dividends. It is just a question of whose dividends should suffer, ours or theirs? We own the oil. They extract it. They are taking the lion's share of the wealth generated from our oil. The governor not only sits on his duff and allows this to happen, but is making a continued onslaught on our permanent fund to balance the budget at our expense. Why not at their expense?
Why cut the state budget? Let's continue to have projects we can't afford right now, such as the Tudor/Lake Otis intersection development. You know, you gotta feed the fat cats.
John J. Kiernan
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