Oil Giveaway: Even in Unlikely Event it Works, Alaska Still Loses
State numbers show even more production won’t overcome billions in lost revenues
JUNEAU – According to a new fiscal note from the Alaska Department of Revenue, Governor Parnell’s proposal to give large tax breaks to the oil industry would still cost the state billions of dollars in lost revenue even if future oil production increases. Because producers have not committed to increasing investment, exploration or production should the bill pass, the administration used arbitrary scenarios assuming various degrees of increased production. No scenario showed Alaska making back lost revenues once the bill takes full effect.
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