More Attitude Change Propaganda from the NYT Against Palin
Posted by iusbvision on March 18, 2011
Palin’s Successors (Republicans Too) Seek to Dismantle Her Energy Legacy
JUNEAU, Alaska — While every online swipe from former Gov. Sarah Palin still draws national attention and stirs fresh speculation about her political ambitions, back home she is no longer quite so imposing.
Even as she casts herself as an energy expert and is quick to attack the Obama administration on oil and gas issues, the two most prominent energy policies she put in place as governor of Alaska face new challenges less than two years after she left office.
Gov. Sean Parnell, Ms. Palin’s fellow Republican and former lieutenant, has announced that it is his top priority to undo parts of major oil tax increases that Ms. Palin made law. He argues that high state taxes, not just federal regulations, are preventing oil companies from exploring new drilling in Alaska and therefore jeopardizing future state revenues.
“Lower taxes means more competitive,” Mr. Parnell said last week. “It means more jobs.”
Sounds pretty bad doesn’t it? It is intended to. As the article goes on it does not indicate just what Changes Gov Parnell wishes to make. So how do you really know her “legacy” is at stake? The narrative that the NYT wishes you to believe is that even the Republicans thought she was misguided and had no idea what she was doing.
Are you ready for the truth? This is wht the NYT decided you didn’t need to know.
Before Gov. Palin blew the whistle about the bribes to keep the Alaska Oil Royalties down Alaska had nearly the lowest oil royalties in the world. You can examine a chart at the following link - http://www.iraqdividend.com/World_Oil_Tax_Policies.pdf
When she ran for Governor Mrs. Palin promised to make the royalties competitive so that the Alaska citizens were not getting ripped off. In fact, Governor Palin sent much of that money to Alaska residents in the form of checks directly to citizens. On top of that Alaska now has a $12 billion rainy day fund (that Democrats are itching to blow).
So what was Governor Palin’s plan? Here are some highlights of bill:
1 – 20% production tax credits for oil and gas investment in Alaska
2 – 22.5% tax rate on “net” positive cash flow or “Production Tax Value”
3 – Progressivity: A higher tax rate (.25) kicks in when oil sells for more than $55 per barrel.
4 – Requires a report in 2011 about how well all the incentive provisions are working to enhance exploration, development and production in the state.
The taxes the oil companies had to pay on the value of the oil increased by 22% which still puts Alaska at a below average tax rate for oil drilling. This is still a good deal for oil companies, but not one that leaves Alaskan’s short changed.
So what is the problem? As the Alaska Daily News reports, the progressive increases in the tax rate per barrel of oil get pretty high when you see oil going to $120 or $130 mark. ADN points out that most legislators did not foresee such prices as being likely. When the price of a barrel of oil gets rather extreme as it is today that tax goes up too high thus making it more profitable to pull oil resources out of Alaska and place them elsewhere.
Here is an even bigger rub, Governor Palin’s bill accounted for this and as you can see section 4 above demands a report in 2011 to see how the bill’s rates and incentives are working to prevent decreases in oil production and potential job loss. Thanks to OPEC and Obama’s illegal off shore drilling ban this is exactly what we are facing. This mandated report, as well as others, show that production and investment in Alaska has fallen since the 2009 oil price spike and is now getting worse.
As a result Gov. Parnell wishes to adjust the progressive part of the oil tax downward to attract more production and job expansion. Governor Palin would have done exactly what Governor Parnell is doing now. Parnell is not reversing Palin’s legacy, he is reaffirming it.