Phony outrage over oil tax bill creates needless distraction

The feigned outrage in the state House about the introduction of an oil tax bill shows that Republicans are still mighty peeved that they don't control the legislative agenda.

The time and energy they wasted on a silly argument Wednesday about getting a proposal before a committee would have been better spent reading the bill.

Instead, we got a choreographed show less convincing than the scene in the movie "Casablanca" where Capt. Renault marches into Rick's Cafe and shouts that he is shocked, shocked to find gambling going on, while collecting his winnings.

It's been standard practice in the Legislature for committee leaders to introduce bills or rewrite bills without getting support or consulting the minority members on the committee.

The introduction of a bill has never signified support by the entire committee. Sometimes it signifies the support of the chairman and no one else.

Now that they are in the minority, the Republicans who ran the Legislature for many years are shocked to discover that what they promoted as an ideal system continues under the new coalition.

On Wednesday, they pumped this up into a phony ethics conflict on the oil tax bill, a distraction from the urgent business at hand to fix Alaska's finances.

Former House Speaker Mike Chenault, who knows better, claimed that an illegal vote had taken place. There was no illegal vote.

Rep. Chris Birch, an Anchorage Republican, said "If it's a committee bill, you can strike my name." It's impossible to do that because his name is not on the bill.

Rep. Les Gara, an Anchorage Democrat, said the Republicans are free to change their minds, but "let's just be honest" that legislators who used to chair committees have changed their positions, and now object to behavior that they thought was fine a year ago.

Eagle River Republican Rep. Dan Saddler took offense: "I think the statement 'let's be honest' implies a necessity to exhort people to be honest who are honest. The implication of 'let's be honest' is we are not honest. That is to imply that we are liars."

Let's be honest.

Nobody cares who introduces a bill.

The Alaska economy is in a dangerous position. The Legislature has a lot of work to do and there is no time for these games.

Leave the posturing for campaign commercials and get serious.

Oil taxes and tax credits are a complicated matter and the hearings are to start next week. Most legislators know a good deal less about this subject than they will admit. The work begins after the bill is in committee.

The public wants a reasonable balance in a fiscal plan — one that weighs the financial impacts on the oil industry, the proposed reduction to the Permanent Fund dividend, the implementation of  an income tax and the proposed increase in fuel taxes, among other issues.

If the Legislature cuts the dividend to $1,000 or $1,500, institutes an income tax, raises the gas tax and begins to draw $1.5 billion from the Permanent Fund to pay for government, and does not make any changes to oil taxes, there will be a major backlash.

This does not mean that a total rewrite of the oil tax law is needed, just enough movement to be recognized as a compromise that spreads the burden.

If the oil industry and its allies dig in and portray any increase as a fatal blow —the long-established political pattern — the risk of continued fiscal and political chaos will rise.

One potential consequence would be more pressure on the oil industry, especially as state reserves dwindle. The industry will not want to see a political debate posed as a trade-off question of whether Alaskans want $700 million in dividends or $700 million in oil tax increases or oil tax credit cuts.

The failure to get a fiscal plan would endanger the survival of the Permanent Fund, the dividend, add to the growing tally of job losses and threaten the economy.

Columnist Dermot Cole can be reached at dermot@alaskadispatch.com. 

The views expressed here are the writer's and are not necessarily endorsed by Alaska Dispatch News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary@alaskadispatch.com. Send submissions shorter than 200 words to letters@alaskadispatch.com or click here to submit via any web browser.