Prevarication: when someone tells a lie, especially in a sneaky way.
In what can only be described as an effort to mislead Alaskans, former Senator Joe Paskvan has penned yet another opinion piece about the upcoming oil tax initiative- with an interesting new twist – if only Alaska was like Texas.
A few things to remember when considering Paskvan’ s piece:
- Under SB 21 the base tax rate was INCREASED from 25% to 35%. ( A significant fact the Paskvan and his pals tend to forget).
- Under SB 21 the per barrel credit was implemented.
- The credit decreases as prices increase. Higher prices, higher taxes.
- The credit increases at low prices. Low prices, lower taxes.
- It’s not a subsidy – the per barrel credit keeps Alaska competitive.
- Alaska and Texas aren’t the same. Suggesting they should receive the same percentage of market price is nonsensical:
- Alaska’s costs are more than $15/bbl higher than Texas
- At $50/bbl oil price, pre-tax profits in Alaska would be $17/bbl. In Texas? $32/bbl
- Taking 30% of the market price in taxes would leave producers in Texas with $17/bbl. In Alaska? $2/bbl.
Producers in Texas make much more after tax than they do in Alaska. Ignoring all the differences between Alaska and Texas tells a story that is….well, a prevarication.
P.S. – Governor Walker and the legislature took the actions that led to the “massive reductions of the PFD annual payments”. Suggesting that SB 21 is the culprit is just another prevarication.