For those attacking Governor Palin for raising taxes on oil companies in Alaska, the facts tell a much different story. After rampant corruption was stopped and criminal politicians, along with oil executives, fined and/or thrown in jail, Sarah Palin set out to reverse the damage done. Here is the Palin tax proposal before Alaska's legislature got a hold of it. This is what Sarah Palin is responsible for on the issue of oil industry taxes in Alaska:
The basic elements of the Palin tax proposal, called Alaska's Clear and Equitable Share, are:
• 25 percent tax on net profits, or the value of the oil minus operating expenses and pipeline and tanker charges. That compares with the 22.5 percent Petroleum Profits Tax passed in 2006. The tax rate rises when oil prices are high.
• Protection when oil prices are low. The big fields of Kuparuk and Prudhoe Bay would pay at least a 10 percent gross tax on the oil's value. This tax on the gross -- before operating expenses are deducted -- would be instead of a tax on net profits, not in addition to it.
• Changes in allowable tax credits and deductions. Producers no longer could write off the cost of replacing deteriorating pipelines.
• Higher salaries for oil tax auditors.
• More information for the state from oil producers and better sharing of information between state agencies.
What you see above is where the $1200 tax rebate came from that sent to the people of Alaska who were robbed by politicians convicted of taking bribes from oil company executives. When you read the actual proposal instead giving a knee-jerk reaction to a tax increase, it is clear this isn't a tax hike near as much as it is returning stolen money back to taxpayers. Not only was there bribery, but her predecessor was giving special breaks to oil companies as Palin stated in this report from FoxNews referencing both McCain and the Governor:
Palin supports offshore drilling like McCain, but they diverge on drilling in the off-limits Artic Wildlife National Refuge. She’s for it and he’s against it, although he’s said he is willing to re-examine the issue.
They both oppose a national windfall profits tax on oil companies, saying it would hinder domestic production. But she raised taxes on oil companies in Alaska last year, arguing that her predecessor, Frank Murkowski gave them too many breaks.
When asked by FOXNews.com whether McCain’s criticism of Obama’s similar proposal to tax oil companies was a contradiction to Palin’s actions last year, McCain campaign spokesman Tucker Bounds batted the question away.
Governor Palin did what any conservative worth their own soul would have done. She gave tax dollars that were literally stolen from Alaskan taxpayers right back to them and appropriately reversed corrupt tax policy. Not only did she bring ethics back to the tax policy in regards to the oil industry in Alaska, she improved the policy itself in her proposal.
