Wednesday, March 27, 2013

Another Republican Makes Sense

I hope you all got to read Bert Stedman's Compass piece in today's ADN. If not take a few minutes to read it here.

Stedman, the Alaskan state senator from Craig and a Republican, is an accountant by trade and voted against Senate Bill 21 which gives multi-billion dollar tax breaks to oil companies without requiring  them to step up production.  Stedman makes several points and that I wish that our local legislatures, Peter Miciche, Mike Chenault and Kurt Olson would have the integrity and maybe the balls to respond to in detail.  Don't count on it.  Chenault and Olson have proven over and over again that the concept of integrity doesn't apply to them.  Micciche, a Conoco/Phillips manager, doesn't seem to know what the word means.

Questions that Senator Stedman has:
1) Why is the AK Dep't of Revenue's prediction of oil production in legacy fields twice the rate established by the major oil companies?
2) Why has the progressive tax rate been eliminated?  Alaskans own the oil, and progressive taxes are the compensation for the value of the oil at international rates. Otherwise we are selling our oil for 1990 prices.  That is insane! The progressive tax is just the way we Alaskans charge the market rate for oil coming out of the ground.
3) What drastic cuts are those who voted for the bill proposing to make up the monetary shortfall the state will now experience? Come on, let us know what you will fund (Knik Arm Bridge? Susitna Dam? Roads to Resources? Two gas pipelines?) and which you will cut (Education? Health Care? Rural energy? Mental health programs? Unfunded liability to state retirement systems?)

It's good that there are a few republicans left that ask honest questions and expect honest answers before selling out Alaska.  It's too bad that none of our local legislatures aren't that honest.

I have three additional questions:
Why not have the amendment that would revert that tax structure back to ACES if the oil companies didn't step up production?  If the goal is to step up production, why not make it mandatory?

If oil did drop to $40 a barrel as Kurt Olson mentioned at the recent town hall meeting in SOLdotna, how much more production would be needed to have the same amount of revenue come to the state as we are now getting and should we expect that much extra production with the new bill?

Why has Gov Parnell not allowed the experts he has hired to look into the tax law to testify to the legislature and why haven't the three oil-company stooges we have representing us demanded that information?

Well, Micciche, Chenault and Olson, got any honest answers?

1 comment:

Joe Blow said...

Chenault, Olson, Micciche ?

Honest answers ?

....that made me laugh,'s not funny,

but it is laughable.

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