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Letters to the Editor

Letter: Oil tax thoughts

  • Author: Eric Middlebrook
    | Opinion
  • Updated: September 7
  • Published September 7

A few ideas to consider concerning Ballot Measure 1. One is an idea that seems to be promoted almost as fact, but I disagree with: the idea that lower taxes encourages investments. I think just the opposite is true.

To illustrate: Say you have a business. At the end of the year, you see potentially a million dollars profit. Your options: take the profits out and pay the full tax on them, or reinvest them, grow the business and avoid most of the tax. I think a lower tax rate encourages profit-taking, and a higher rate encourages reinvestment.

What concerns me more than discouraging investment is a spiteful reaction. However, in the long run, it will be worse if we don’t, as citizens, stand together and say we don’t like what is going on right now. Seeing our wealth leaving the state and getting very little for it, while there are reduced dividends and talk of an income tax.

A final thought: I see a lot of ads featuring Alaska business owners, for whom I have the utmost respect. But please don’t ask me to compare them to very large companies. These locally based Alaska businesses are not the face of multinational corporations.

Ballot Measure 1 is extremely important. Please learn about it and vote.

Eric Middlebrook

Bethel

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