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HOW ALASKANS SHOULD OBTAIN A FAIR SHARE FROM OUR NATURAL RESOURCES Out Of State Corporations Do Not Need More Tax Relief Oil in Alaska is dominated by corporations. Most of the discovered oil in Alaska is on state land. Oil is a non-renewable resource. We have to get our fair share while the oil is being produced. To get the right to dril for oil, companies agree to pay a royalty. The royalty rate on Alaska's North Slope is basically 12.5%. That is one-half of what it is in Texas and most states Some states tax oil in the ground. Alaska has a property tax on the TAPS pipeline but not on oil in the ground. So, the only realistic way for us to obtain our fair share is to obtain it through a severance tax. Effectihely We Have No Seerance Tax Legislative amendments for tax credits Conoco/Phillips pushed through in 2013 effectively eliminated our severance tax. This is like the federal corporate tax. Most US corporations use tax loopholes to pay minimum taxes In 2018, 60 of the nation's largest corporations paid no taxes including Chevron, (Institute on Taxation and Economic Policy, April 11, 2019) Hom Does Ballot Mekasure I Present The Continusd Loss Of All Sererance Income To Alaska? () It taxes only the three legacy fields on the North Slope - Prudhoe Bay, Kuparuk and Alpine, (2) It sets a minimum amount dependent on oil price (3) It excludes any exploration costs outside the three legacy fiekds from deduction as an expense, (4) It requires the oil corporations tax returns to be made public. What Ballot Measure 1 Does NOT De It does NOT apply to oil severed from private land, Native land, federal land, Cook Iniet, new fields or any ficld other than Prudhoc Bay, Kuparuk or Alpine. Setting The Sererance Tax Rate In dealing with the oil corporations to get our fair share, it is important to keep several things in mind: (1) Oil corporations do not believe in a severance tax. They will never tell you what a fair tax is or one they are willing to pay. So, we have to decide ourselves what is rea (2) Lae Tasonahle Trump, they will never make their tax returns public. I was introduced this kamuary 2020 identical to Ballot Measure I. No real hearing was ever held. The governor has said he would not consider any tax legislation. The legislature has no consaltants to furnish oil tax information or advise on drafting it. The organization of both the House and Senate in 20019 was based on the agreement that there would be no oil tax legislation considered. So, if we are to obtain an effective severance tax, IT HAS TO BE BY (3) A bill (4) In 1992, Walter Hickel obtained a S4 billion settlement over disputed back taxes and royalties, money that filled Alaska's Constitutional Budget Reserve fund. The tax avoidancelevasion by the international oil corporations was uncovered by tax audits (5) Tax audits between 1992 and 2019 have consistently uncovered under payments ranging between S100 million to S500 million a year. The total is between S3 billion and SS billion. (6) Whether the oil corporations like what we do or not is entirely immaterial. We are not buying love; we are selling oil. You Cannet Beliene What The Oil Corporations Sax (1) The three oil corporations will pay S15 million to fight Ballot Measure I. They claim there are more than 77.000 Alaskan oil jobs I Get The Truth Check With The Department Of Labor Oil jobs are good. But the actual mumber is small. According to the Alaska Department of Labor June 2020 report: (1) "Between 2015 and 2018, the oil industry lost a third of its employment (nearty 5,000 jobs). (2) That was more than double the amount the industry had lost at any point in history (3) "Employment... is anticipated to fall further." (4) Currently, there are about 9,000 oil jobs (s) Overall, non-residents hold more than a third of the state's oil industry jobs (6) Over the long term, the percent of non-residents has been on the rise, and (7) Two-thirds of oil industry jobs are on the North Slope or in Anchorage. So, of the actual 9.000 oil industry jobs in Alaska, only 6,000 are for Alaskan residents, and two-thirds of those are on the North Slope or in Anchorage. That 6,000 is less than 2 percent of all jobs in Alaska and is less than 1/10th of the mumber claimed by AOGA. AOGA's claim of 77,000 oil jobs is simply "Fake News" The 2013 oil company legislation was a disaster for labor. In the meantime, Conoco/Phillips: (1) continued its CEO's S18,000,000 a year salary. (2) increased its dividend to shareholders, bought back some of its own shares (4) made more money from its Alaska operations than it has from the rest of its lower 48 operations. And for that, we are losing S500 million to S1 billion a year in severance tax income? Ihink What A.Capital Budget Would De We should fund a capital budget. The resulting work would be throughout the state, not just in Anchorage and Prudhoe Bay. All Alaska unions would find work. Alaskans throughout the state would have the opportunity to work in a wide range of projects benefitting Alaska. What About Oil Prices? In 1974, when the oil corporations started to spend S8 billion to build TAPS, the inflation adjusted price of oil was S48.84. In 2019, the last full year, the adjusted price was $50.01, or about 2.4% higher. What About The Permanent Eund Disilend: Now everybody supports the dividend. Some have for decades, like Senator Bill Wielechowski and former Senate President Clem Tillion. But now, after taking some Alaskans gave oil a chance in 2014. It was a disaster. And Oil's Voice does not mention that the constitutional budget reserve is basically exhausted. A new source of revenue has to be found if we are to fund education as the Alaska constitution roquires, if the state ferries are to run, if rural villages are to have physical safety and safe water, if our university can celebrate its 100th birthday, AND if we are to have any dividend at all. Whe To Beliene? Clkm Tillion and I served in both the House and Senate and as President of the Senate. Once I asked him, "When it comes to voting, how do you know who to Ckm and Senator Bill Wielechowski have for years fought all the way to our Supreme Court to protect the dividend. Both recognize that actual severance tax income is essential for a functioning government and funding the dividend. You do not have to guess who I would trust! Please vote Yes on Ballot Measure 1. For more information, go to https://alaskasfairshare.com Written by Chancy Croft, Retired Attorney in Anchorage, Alaska. HOW ALASKANS SHOULD OBTAIN A FAIR SHARE FROM OUR NATURAL RESOURCES Out Of State Corporations Do Not Need More Tax Relief Oil in Alaska is dominated by corporations. Most of the discovered oil in Alaska is on state land. Oil is a non-renewable resource. We have to get our fair share while the oil is being produced. To get the right to dril for oil, companies agree to pay a royalty. The royalty rate on Alaska's North Slope is basically 12.5%. That is one-half of what it is in Texas and most states Some states tax oil in the ground. Alaska has a property tax on the TAPS pipeline but not on oil in the ground. So, the only realistic way for us to obtain our fair share is to obtain it through a severance tax. Effectihely We Have No Seerance Tax Legislative amendments for tax credits Conoco/Phillips pushed through in 2013 effectively eliminated our severance tax. This is like the federal corporate tax. Most US corporations use tax loopholes to pay minimum taxes In 2018, 60 of the nation's largest corporations paid no taxes including Chevron, (Institute on Taxation and Economic Policy, April 11, 2019) Hom Does Ballot Mekasure I Present The Continusd Loss Of All Sererance Income To Alaska? () It taxes only the three legacy fields on the North Slope - Prudhoe Bay, Kuparuk and Alpine, (2) It sets a minimum amount dependent on oil price (3) It excludes any exploration costs outside the three legacy fiekds from deduction as an expense, (4) It requires the oil corporations tax returns to be made public. What Ballot Measure 1 Does NOT De It does NOT apply to oil severed from private land, Native land, federal land, Cook Iniet, new fields or any ficld other than Prudhoc Bay, Kuparuk or Alpine. Setting The Sererance Tax Rate In dealing with the oil corporations to get our fair share, it is important to keep several things in mind: (1) Oil corporations do not believe in a severance tax. They will never tell you what a fair tax is or one they are willing to pay. So, we have to decide ourselves what is rea (2) Lae Tasonahle Trump, they will never make their tax returns public. I was introduced this kamuary 2020 identical to Ballot Measure I. No real hearing was ever held. The governor has said he would not consider any tax legislation. The legislature has no consaltants to furnish oil tax information or advise on drafting it. The organization of both the House and Senate in 20019 was based on the agreement that there would be no oil tax legislation considered. So, if we are to obtain an effective severance tax, IT HAS TO BE BY (3) A bill (4) In 1992, Walter Hickel obtained a S4 billion settlement over disputed back taxes and royalties, money that filled Alaska's Constitutional Budget Reserve fund. The tax avoidancelevasion by the international oil corporations was uncovered by tax audits (5) Tax audits between 1992 and 2019 have consistently uncovered under payments ranging between S100 million to S500 million a year. The total is between S3 billion and SS billion. (6) Whether the oil corporations like what we do or not is entirely immaterial. We are not buying love; we are selling oil. You Cannet Beliene What The Oil Corporations Sax (1) The three oil corporations will pay S15 million to fight Ballot Measure I. They claim there are more than 77.000 Alaskan oil jobs I Get The Truth Check With The Department Of Labor Oil jobs are good. But the actual mumber is small. According to the Alaska Department of Labor June 2020 report: (1) "Between 2015 and 2018, the oil industry lost a third of its employment (nearty 5,000 jobs). (2) That was more than double the amount the industry had lost at any point in history (3) "Employment... is anticipated to fall further." (4) Currently, there are about 9,000 oil jobs (s) Overall, non-residents hold more than a third of the state's oil industry jobs (6) Over the long term, the percent of non-residents has been on the rise, and (7) Two-thirds of oil industry jobs are on the North Slope or in Anchorage. So, of the actual 9.000 oil industry jobs in Alaska, only 6,000 are for Alaskan residents, and two-thirds of those are on the North Slope or in Anchorage. That 6,000 is less than 2 percent of all jobs in Alaska and is less than 1/10th of the mumber claimed by AOGA. AOGA's claim of 77,000 oil jobs is simply "Fake News" The 2013 oil company legislation was a disaster for labor. In the meantime, Conoco/Phillips: (1) continued its CEO's S18,000,000 a year salary. (2) increased its dividend to shareholders, bought back some of its own shares (4) made more money from its Alaska operations than it has from the rest of its lower 48 operations. And for that, we are losing S500 million to S1 billion a year in severance tax income? Ihink What A.Capital Budget Would De We should fund a capital budget. The resulting work would be throughout the state, not just in Anchorage and Prudhoe Bay. All Alaska unions would find work. Alaskans throughout the state would have the opportunity to work in a wide range of projects benefitting Alaska. What About Oil Prices? In 1974, when the oil corporations started to spend S8 billion to build TAPS, the inflation adjusted price of oil was S48.84. In 2019, the last full year, the adjusted price was $50.01, or about 2.4% higher. What About The Permanent Eund Disilend: Now everybody supports the dividend. Some have for decades, like Senator Bill Wielechowski and former Senate President Clem Tillion. But now, after taking some Alaskans gave oil a chance in 2014. It was a disaster. And Oil's Voice does not mention that the constitutional budget reserve is basically exhausted. A new source of revenue has to be found if we are to fund education as the Alaska constitution roquires, if the state ferries are to run, if rural villages are to have physical safety and safe water, if our university can celebrate its 100th birthday, AND if we are to have any dividend at all. Whe To Beliene? Clkm Tillion and I served in both the House and Senate and as President of the Senate. Once I asked him, "When it comes to voting, how do you know who to Ckm and Senator Bill Wielechowski have for years fought all the way to our Supreme Court to protect the dividend. Both recognize that actual severance tax income is essential for a functioning government and funding the dividend. You do not have to guess who I would trust! Please vote Yes on Ballot Measure 1. For more information, go to https://alaskasfairshare.com Written by Chancy Croft, Retired Attorney in Anchorage, Alaska.

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