Declining oil revenues in recent years have caused Alaskans great stress, suspiciously viewing state spending that once adequately supported schools, hospitals, public safety, transportation, arts and more. We have cut “frivolous” programs out of everything, but we still find our pocketbook short. Our lawmakers consider income taxes and the unthinkable: capping oil royalty revenue payouts in order to pay our state bills. This is fair. In tough times, everyone must pitch in to help out.
Why not charge the oil companies, who have benefited handsomely from our oilfields, their fair share? We have cut our budget to the bone and individual citizens are preparing for income taxes and permanent fund caps. It makes no sense for the state to pay more in industry subsidies than they pay us for our oil.
I applaud efforts in our state legislature to end the extremely low oil company production tax rates for the oil on Alaskan soil. The House Finance Committee substitute of HB 111 is “An Act relating to the oil and gas production tax, tax payments, and credits.” This is a reasonable bill. It is appropriate for the petroleum industry to pay proportionally for the oil extracted from our fields.
I’m writing to urge Senate Resources, Senate Finance and the Alaska Senate to move HB 111 from committee. I hope you’ll add your voice of support for this bill, as time is running out on this legislative session.
Luann McVey
Douglas
