Crawford gives in on his tax effort
From R.A. Dillon in Juneau:
Anchorage Democratic Rep. Harry Crawford dropped his amendment for a gross tax on oil and gas production.
Crawford has been frustrated by the Legislature’s concentration on a net-based tax rate.
“I just think a net profits tax is a huge mistake,” Crawford said.
The proposal would tax the gross value of production at the wellhead.
His proposal would set a 17 percent base tax on the gross value of oil production at the wellhead. On gas production, the tax rate would be 13 percent. The “progressivity” surcharge would be 0.25 when the price of oil was between $40 to $70 a barrel. The surtax would be 0.35 above $70. It includes a 40 percent tax credit for investment of more than $100 millon. Some 50 percent of the surtax revenue would be committed to the constitutional budget reserve.
The amendment was held until later tonight.
News-Miner reporters Stefan Milkowski and Eric Lidji bring you up-to-date info about the governor's oil tax and
the gas line plans as well as tossing in some tidbits that have nowhere else to go.
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