The Legislature has begun examining my proposal to spur investment and create jobs in our state for Alaskans by adjusting state oil tax rates. At this critical juncture, we have to ask, is Alaska open for business? Do we want to grow jobs and our economy by making our state more competitive in the production of our rich resources, or do we want to maintain the status quo?

We cannot afford to stand by with oil production declining and the very life of our economy fizzling away. Nor should we be satisfied to watch oil jobs and investment move to Russia, Brazil and elsewhere.

America needs Alaska's oil. An unstable Egypt and the risk to the Suez Canal only illustrate again just how critical Alaska's oil is to our country.

My administration has proposed two-pronged legislation. We propose tax credits for drilling additional wells in the legacy fields. When companies keep their capital in Alaska, it creates additional payroll for Alaskans' pockets. For those companies taking bigger risks and exploring outside of existing fields, we are proposing a lower base tax rate; if no exploration has occurred in 40 years in these areas, we can jump-start hundreds of new wells and thousands of new jobs. For all oil taxpayers, we propose a cap on production taxes.

The approach we've taken is the result of thoughtful study and asking economists how to bring investment back to our state. It's all about job creation for Alaskans and ensuring a steady volume of oil in the pipeline.

History has shown that the more you tax something, the less you get of it. The more we tax companies for producing a commodity, the less they will produce here, and the more they will produce elsewhere.

On the other hand, with the energy industry providing over 85 percent of our state's annual budget, cutting taxes will not just create jobs but, by increasing exploration and investment, will lead to greater revenue. That means money for schools, troopers, roads and ferries.

The federal government is killing jobs on federal lands through dragging its feet on permitting. In Alaska, however, we can focus on developing oil on state lands, but we must provide more incentives for companies to make the significant investments needed.

We've seen how reducing taxes on an industry works. Together, we cut the passenger excise tax by nearly 25 percent and, as a result, companies are returning more visitors to fuel Alaska small and mid-sized businesses. The less you tax, the more you get.

Alaska's elected officials are tasked with growing economic opportunity for all. Changing our oil taxation structure will take courage and a willingness to listen. It's time to move forward for Alaska breadwinners.