We can do better than create our own fiscal cliff to fall over. The Governor and some GOP leaders are pushing a plan whose biggest component is give ExxonMobil, BP and ConocoPhillips roughly $1 billion-$1.5 billion a year in tax rollbacks. The bill specifically allows them to spend that money outside Alaska.
That experiment of low taxes and an unfair Alaska share for our oil failed through 2006. Then we had a near zero percent tax on most fields, let companies spend their breaks outside Alaska, and got declining oil production. Let’s do something that works instead.
I and other Democrats have filed legislation that allows responsible tax breaks only if companies invest in new Alaska oil production and development. We support production for reduction, not the status quo as alleged by a recent letter writer.
The governor’s $1.5 billion giveaway will cause losses in construction, teacher, firefighter, law enforcement and other jobs, deplete our savings, and invite calls for personal taxes or cuts to your PFD.
I’d rather create new production than a fiscal cliff.
— Rep. Les Gara