Alaskonomics

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green_cactus_IHB

green_cactus_IHB

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An interesting take on the economics of Alaska and how it might be difficult to pull off that "miracle" on a national scale. Alaskonomics.

[Alaska] has four different taxes on oil, which produce more than 89% of the state's unrestricted revenue. On average, three-quarters of the value of a barrel of oil is taken by the state government before that oil is permitted to leave the state. Alaska residents each get a yearly check for about $2,000 from oil revenues, plus an additional $1,200 pushed through by Palin last year to take advantage of rising oil prices.
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I'm waiting for the outrage from the so called conservatives around these parts about this redistribution of wealth and excessive taxes on corporations.
 
green_cactus said:
An interesting take on the economics of Alaska and how it might be difficult to pull off that "miracle" on a national scale. Alaskonomics.

[Alaska] has four different taxes on oil, which produce more than 89% of the state's unrestricted revenue. On average, three-quarters of the value of a barrel of oil is taken by the state government before that oil is permitted to leave the state. Alaska residents each get a yearly check for about $2,000 from oil revenues, plus an additional $1,200 pushed through by Palin last year to take advantage of rising oil prices.
Click to expand...

I'm waiting for the outrage from the so called conservatives around these parts about this redistribution of wealth and excessive taxes on corporations.
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What redistribution? Alaska owns the oil, so it makes sense that they get the bulk of the value received. Where else should it go? The oil companies?

I find it admirable that much of the revenue is distributed to the citizens of the state, rather than held, or spent, by the state government. This is not redistribution, it is payment to the owner for the goods being sold. Oil prices went up and the citizens were paid more for their product.

The State of California could have done something similar. Oil offshore. Contract with oil companies to develop the resource owned by the State. The state would be receiving buckets full of revenue. Other offshore oil is in Federal waters. Allow development and the state could receive revenue from the jobs created and the on-shore processing facilities. Add these up as additional revenue streams to the state coffers, and the state just might be able to balance a budget, which apparently is impossible now.

On the Federal level, same process and benefit, but admittedly with lesser effect since the Federal budget is just soooooo big.
 
skek said:
Add another point to the green_cactus worthless thread tally. Honestly, cactus, you are like death from a thousand paper cuts. You are like being pecked to death by a mob of baby hens. You have the same debating style as my two year old -- relentless repetition of undecipherable babble until the sheer annoyance of it all overwhelms the adults' willpower.
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Yeah... well you are giant verbose douche! Why don't you go back to hanging out with that giant turd sandwich and stop posting any useful threads? You sissy, you get taken down by a two year old. How can anyone have respect for you after knowing that? %-P
 
skek said:
Add another point to the green_cactus worthless thread tally. Honestly, cactus, you are like death from a thousand paper cuts. You are like being pecked to death by a mob of baby hens. You have the same debating style as my two year old -- relentless repetition of undecipherable babble until the sheer annoyance of it all overwhelms the adults' willpower.
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Palin keeps on bragging about how she managed to balance the budget in Alaska and run a surplus. Why should we not scrutinize this claim? Why not question her support for oil profit taxation when Democrats where criticized so much for the same. A little game to keep you entertained ...

Match the oil tax with the person.

Person:

A. Hugo Chavez

B. Sara Palin

Oil Tax:

1. "The tax is imposed on the net profit earned on each barrel of oil pumped, after deducting costs for production and transportation. The tax is set at its highest rate, where the state takes 25 percent of the net profit of a barrel when its price is at or below $52. The percentage then escalates as oil prices rise over that benchmark."

2. "The tax is levied when the price of crude rises above $70/barrel. The state will take 50% of the difference between this level and the monthly average of the final sales price above the $70 level. As the price exceeds $100, the state's participation rises to 60%."

Have fun!
 
In the US there are 5 states with no state sales tax, and 7 with no state income tax. The states with no state income tax are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. New Hampshire and Tennessee has state income tax only for dividend and interest income, not wages.

Alaska is one of the few states with both no state sales tax & income tax. As the above posts already discussed, the state levies taxes on gas and oil to pay for it.

Texas also has no state income tax, with 3/4ths of state income earned through taxes on oil and gas production.

Nevada has no personal income tax, corporate income tax, and franchise tax. The state earned 13.4% of its general revenue from gaming taxes, but don't let the smallish figure deceive you. Consider what a typical tourist spends in hotel, food, entertainment, shopping, etc. The state levies 7.5% state sales tax and 9% hotel room tax.

So what does these figures tell you? It means that Californians are subsidizing the residents of Alaska and Texas every time we go to the pump, and those in Nevada whenever we visit Vegas. People in other states are enjoying their low tax base because of me and you, then we pay one of the highest state income taxes on top. Doesn't that make you feel all warm and fuzzy on the inside?

This is why, we legalized gambling in California, and has so far refused to build high speed rail service to Las Vegas.
 
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