One of the hot issues that will be before the Legislature this session is whether or not oil taxes or ACES need to be revised. The Governor and several legislators have introduced bills to address this issue.
I am concerned because if there is no new development, then we will not be replacing the declining amount of barrels of oil that are flowing through the pipeline. Should this happen, at a 8% declining rate of production, we simply will not have enough revenue to fund programs that so many Alaskans rely on. I am concerned that we should worry about keeping Alaskans working, rather than ensuring more revenue for the state. Whether we like it or not, oil provides about 88% of our state revenues and without further development, at least I believe, we will be heading for a hard fall and other tax revenues from you and me will have to be implemented. Even then, we cannot tax people enough to replace lost oil revenue.
In my opinion, the current oil tax does not encourage development of both new and old fields. Without that new development and investment, our future is not very bright.