It looks like another year, probably two, will go by without a change in the way we tax the oil companies. Their strategy is to not only contribute generously to politicians’ campaigns, but also to commit millions to deceptively tell Alaskans how badly a tax adjustment would hurt them — like the claim that SB 114 and SB 122 would be a 75% tax increase for them. I’d like to see the figures behind that claim.
Sure, when an LLC has to pay taxes that C-corporations already pay, that could be called a 100% tax increase, but it only levels the
playing field. When tax credits for development are reduced from $8 per barrel to $5 per barrel, is that the 75% increase? When I noticed the big oil companies made $20 billion in profits last year, that tax change will probably cost them less than 1% of those profits.
I’ve also been amazed over the years how small a percentage of profit the contributions to Alaska charities and institutions like the Iditarod create great public relations. It’s also shielded Big Oil from the fact that as owners of this non-renewable resource, we have been ripped off for years compared to other oil-producing entities.
When Robin Brena detailed the situation before legislators recently, I noticed that they had no questions for him. In fact they looked like they weren’t paying any attention because their minds were already made up. And next year is an election year, so no tax changes will be considered.
It’s way past time we refuse to be intimidated by these oil companies. It’s certainly time to get our fair share and put our state on a firm financial footing. Call your legislators now.
— Jon Sharpe
Anchorage
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