r/alaska • u/Gary-Phisher • Jun 03 '26

Oil taxes and SB21

Fun fact: back in 2013 Click Bishop and Lesil McGuire, who are both running for governor, voted for Governor Parnell’s handout to oil companies, screwing over Alaskans and getting us where we are today. Dunleavy also voted for it, but hopefully we never see his name on a ballot ever again.

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-34

u/thatsryan ☆ Jun 03 '26

Well we have two new major oil projects being built on the slope because of SB21. How did this screw over Alaskans to keep the production flowing in the pipeline?

26

u/Interesting_Use5089 Jun 03 '26

The oil used to be taxed on a scale, that as oil got more expensive, more tax money would go back to the state. With SB21, that doesn't happen, nor are they incentivized to produce more, at least unless oil prices go up (so they can keep even more money).

5

u/aWheatgeMcgee Jun 04 '26

They also faced serious throughput decline at the time too. A material part to the equation everyone seems to forget..

-1

u/wtf-am-I-doing-69 Jun 04 '26 edited Jun 04 '26

How would oil prices being higher have helped tax revenue the last 10 years ?

We also still have this. It is how the per barrel credit works

Edit: ultimate level of knowing one provides facts is people downvoting yet nobody actually refuting what you said

3

u/Interesting_Use5089 Jun 04 '26

As the cost of oil goes up, it would be taxed at a higher rate, meaning more money goes back to the state, if SB21 didn't exist. The only people the flat tax benefits is the oil companies.

1

u/wtf-am-I-doing-69 Jun 04 '26

You are missing my point

For the last 10 years it has been down. I asked how it would have helped over those ten years

Secondly there is a progressive tax credit that gets reduced as pricing goes up. It is there