Critics of new Alaska oil tax call for revamp

[Joanne98]

Source: Reuters

ANCHORAGE, Alaska (Reuters) - Critics of Alaska's new oil-tax system are raising pressure on Gov. Sarah Palin to investigate and rewrite the controversial scheme during a special session this fall.

Some Alaska lawmakers say the tax system, which charges against the net profits oil companies make in Alaska instead of their overall production, cheats the state out of around $1 billion per year and may have been the product of corruption.

"This issue is also one of sovereignty," said state Rep. Les Gara, an Anchorage Democrat and longtime critic of the new tax system. "By letting the companies manipulate their profit numbers, you let them control the amount they can skate on in terms of tax payments."

Defenders of the Petroleum Profits Tax say it is fair and add that changing the system just one year after it was adopted could scare off new investment by making Alaska seem like an unstable place to do business.



Read more: http://www.reuters.com/article/politicsNews/idUSN3040338220070730

[EVDebs]

1. What's this ? Royalties being paid to the state in Socialist Alaska ? Sacre bleu.

The citizens in AK get paid royalties from oil produced in their state yet here in the lower 48 such royalties aren't paid to every citizen, now, are they ?