Skip to comments.How Sarah Palin Got a AAA Credit Rating for Alaska (Attacking her for raising oil company fees)
Posted on 08/08/2011 8:34:04 AM PDT by 2ndDivisionVet
In light of Friday's decision by Standard and Poor's to downgrade the United States' credit rating to AA+, it's worth mentioning again -- as I first did in this Atlantic piece -- that Alaska recently had its bond rating raised to AAA for the first time in the state's history, largely due to fiscal improvements brought about by Sarah Palin while she was governor. The state currently enjoys a $12 billion budget surplus. I was reminded of this fact over the weekend by Ian Lazaren, the indefatigable supporter-cultist behind Conservatives4Palin.com.
This is unquestionably a good thing for the people of Alaska, just as the country's downgrade is a bad thing. The state enjoys lower borrowing costs as a result. But especially in light of the current dysfunction in Washington, it's important to understand why Alaska's fiscal situation improved: It was largely because Palin raised taxes. Specifically, the state oil tax. Her central achievement as governor was signing a law, Alaska's Clear and Equitable Share (ACES), that dramatically increased the state's share of oil profits just as oil prices began to take off. There's a direct line between increased revenue and improved fiscal health. (Alas, the good folks at Conservatives4Palin have posted a gloating item about Alaska's credit-rating that both attacks Obama for raising taxes and neglects to mention that Palin's own tax increase was the basis for the improvement.)
(Excerpt) Read more at theatlantic.com ...
Im supposed to be upset about this? Obama is fighting oil, coal and gas at every turn. Sarah wanted more of it because it was paying the bills. The A-hole in chief might not have noticed,,, but around the country, the only conomies that are booming are based solidly on oil and gas.
It’s time to impeach Obama, even if it denies us the pleasure of seeing him lose the election. He is deliberately destroying the economy..
Exactly. Alinsky-ite tactic.
And I seem to recall the last number I saw, showed Alaska in the black to the tune of $40 Billion. The rest of the US should be so lucky.
Pick the states with the lowest unemployment. They all have oil and gas in common as the engine of their economy. The communist in chief is trying to kill it.
Sarah’s approach sounds fine to me.
If a democrat did what she did people here would be screaming that the rats went after ‘big oil’ and ‘stole’ their profits to ‘redistribute’ their wealth. But since Palin did it it’s AOK. What hypocrisy!
How terrible! The evil oil companies were sitting on their oil, waiting for higher prices. She persuaded them to drill, produce, and build pipelines, increasing domestic production and enriching the state.
Obama, of course, does the opposite. Which the Atlantic loves. Don’t drill, don’t produce, and only build pipelines to China.
Capital B Capital S. And you know it!
Every state imposes some kind of tax or fee on mining and extraction activity. The fees or taxes thus raised, if used properly, take care of public costs associated with these activities-- wear and tear on the roads or necessary upgrades being the most common. These are normal and, all but your most extreme libertarians, would agree that they are necessary as well.
The problem comes when big government demonizes these industries and wants to shut them down without a logical assessment of costs versus benefits. Exhibit A is the ObaMao Administration's attitude toward coal fired power plants. Burning coal to generate power is evil, not because actual data shows it, but because petty political experts so decree.
Exhibit B is even more common-- punitive taxes imposed to benefit one set of political allies at the expense of political opponents. This was the Rendell Administrations position on natural gas drilling in western Pennsylvania. They weren't opposed to it per se, they just wanted it to generate taxes to be redistributed to Fat Eddie's friends in Philadelphia and Scranton rather than the regions of the state actually impacted by the gas drilling. This is why little happened until Fat Eddie was shown the door.
Sara did raise oil taxes, a lot. (If you live in Cali and are paying $5+ a gallon for gas - thank you.)
And now unemployment is up, a lot.
Only a single drill rig was working this summer. Which means a whole lot of people were not working.
At least one major oil comapny (so far) has sold all of thier assests and has left the state.
In my small neighborhood, 6 familys have put their homes up for sale and left the state.
And for the record, Alaska is #2 in bonded indebtness of all the States and some local communities (Most notable Barrow AK) are so in debt, there is no real hope they will ever pay all of their bonds off.
So I guess ther is a cost for that AAA rating - at least here.
In case you want to know more
ACES oil tax structure went into effect years before Moody raised Alaska’s rating.
The bond rating was actually raised after Sarah Palin quit the office.
ACES passed back in 2007.
The bond rating was raised in Nov 2010.
Sarah Palin quits as Governor, July 2009.
If you are living in California and paying $5+ for gas, it’s because the state assembly wants you to and demands that the oil companies refine California gasoline to a different standard.
That is nothing but the facts! The only BS is being spouted by those trying to defend that policy!
Go read Alaska’s constitution and then get back to us.
Your *facts* are twisted by your personal outrage. HERE is the *facts*.
Former state Representatives Pete Kott and Vic Kohring have been convicted taking bribes from oil company executives in Alaska. Using the oil profits tax passed in 2006, these politicians literally used their offices to steal money from the citizens of Alaska. Governor Sarah Palin would have none of it, and set to work to correct the problem and return that money to Alaskan residents...
Governor Palin did what any conservative worth their own soul would have done. She gave tax dollars that were literally stolen from Alaskan taxpayers right back to them and appropriately reversed corrupt tax policy. Not only did she bring ethics back to the tax policy in regards to the oil industry in Alaska, she improved the policy itself in her proposal.
The tax raises when oil prices are high, and falls when oil prices are low. This give amazing incentive for the oil companies to produce more oil, which increases supply, and lowers prices for everyone including the taxes they themselves pay the state. When oil prices are low the tax moves to a 10 percent tax on the gross, instead of the net tax of 25% when prices are high. Instead of, not in addition to. The oil companies in Alaska with the Palin proposal pay the state minus their operating expenses along with pipeline and tanker charges. In this way, the oil companies are not taxed for the cost of doing business.
So if someone snowed you and put you out of a job and blamed Sarah Palin, they were lying through their teeth. And if YOU didn’t bother to find out the truth, then shame on you because you wasted a lot of time blaming the wrong person. DEAL with it.
It was the CROOKS before Palin that screwed you.
I was one of those. But I needed to stay employed so I returned to Texas from Alaska.
Sorry, I forgot this link above.
We knew that Governor Palin created serious enemies among the corrupt of the republican party and the oil industry love nest.
What hurts us in California is the 70 cents in taxes per gallon of gas, I think you guys pay 26 cents per gallon in taxes in Alaska.
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