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It looked like Governor Palin picked on one industry, the one with the biggest pockets.
Actually she passed costs onto everyone, spreading them out, and then used the revenues to reduce demands. The federal government could learn a lot from doing the same exact thing.
The answer lies in ACES' combination of only taxing net profits, and a robust set of tax credits for certain types of expenditures. Instead of taxing on gross revenues, the bill recognizes that production costs are substantial and should be factored into the tax rate. This means that for more challenging developments, like heavy oil production with its much higher costs, or extended reach horizontal wells, the law lets those costs be deducted from revenues before a dollar of tax is paid. The tax credits in ACES work as incentives for new developments and exploration.
What about jobs? Some critics of ACES call it a "job-killer." The facts, however, present a much different picture. Recent numbers from state labor economist Neal Fried indicate that employment in the oil industry is at record levels. BP, for example, employed about 1,650 people in 2006. Today the number is just short of 2,000. That's 350 more good paying jobs. Overall employment is equally robust: For the first three quarters of this year, the average monthly job count in the oil and gas industry was 13,111, compared to 12,677 for the same period in 2008.
Synopsis.. Give companies tax credits, and they will produce jobs, which decrease government expenses and improve governmental income to help balance budgets. Again, Obama could learn a lot from the model because this is everything you Democrats oppose.
More repeating of lies? Dam, don't you liberals ever get tired of being wrong? Alaska got the most REVENUES per occupant, but thats because the federal government is BUYING the oil.
They also conveniently leave out the part about AK having the lowest population density of any state in the union. Liberals flunk economics and fractions.
The answer lies in ACES' combination of only taxing net profits, and a robust set of tax credits for certain types of expenditures. Instead of taxing on gross revenues, the bill recognizes that production costs are substantial and should be factored into the tax rate. This means that for more challenging developments, like heavy oil production with its much higher costs, or extended reach horizontal wells, the law lets those costs be deducted from revenues before a dollar of tax is paid. The tax credits in ACES work as incentives for new developments and exploration.
What about jobs? Some critics of ACES call it a "job-killer." The facts, however, present a much different picture. Recent numbers from state labor economist Neal Fried indicate that employment in the oil industry is at record levels. BP, for example, employed about 1,650 people in 2006. Today the number is just short of 2,000. That's 350 more good paying jobs. Overall employment is equally robust: For the first three quarters of this year, the average monthly job count in the oil and gas industry was 13,111, compared to 12,677 for the same period in 2008.
Synopsis.. Give companies tax credits, and they will produce jobs, which decrease government expenses and improve governmental income to help balance budgets. Again, Obama could learn a lot from the model because this is everything you Democrats oppose.
Synopsis.. Give companies tax credits, and they will produce jobs, which decrease government expenses and improve governmental income to help balance budgets. Again, Obama could learn a lot from the model because this is everything you Democrats oppose.
Naaah! Forget the credits. Simplifying the tax code and reducing tax rates will reduce government expenses and increase income.
You mean they broadened the tax base, which is exactly what the Obama debt commission suggested, the GOP and Tea Partiers wanted, but Democrats object to?
The State of AK does not have an income tax or work tax. The tax is imposed on the oil companies that drill oil from State land. All she did was to increase the existing tax, which in turn benefited the State when the price per barrel increased in recent months. The higher the price of oil on the market, the larger the surplus in Alaska. However, any governor could have done the same thing. It just happened that she was the governor at the moment, and that the price of oil on the market went sky high right after.
Actually I agree with all of this except one part. (Most of those suggestions were in the Obama debt commission report, the one he ignored)
How does reducing the tax code and tax rates reduce government expenses?
Simplification of the code, reducing the tax rates while closing credits and other end-arounds increase the revenue and also reduce government expenses in this way...
I imagine a tax form that can fit on a 3"x5" index card (I'm dating myself, there are probably no such things as index cards anymore). The increase in productivity per IRS employee would skyrocket, thereby, possibly justifying a reduction in staff.
It would definitely reduce the expenses of individuals and corporations, although it would reduce the work load of many tax accountants.
The State of AK does not have an income tax or work tax. The tax is imposed on the oil companies that drill oil from the State land. All she did was to increase the existing tax, which in turn benefited the State when the price per barrel increased in recent months. The higher the price of oil on the market, the larger the surplus in Alaska.
Actually no, she provided tax CREDITS for drilling which allows them to earn more profits in Alaska then somewhere else, not increased taxes. They are OPPOSITE of one another.
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