By Rudy McGillvray
March 07, 2006
However, I have questions regarding the legality of only one 'extractive industry' read "Big Oil" paying for it. True, the oil industry in Alaska generates the most revenue for our State's operation and Savings Accounts. However, I am surprised they (Big Oil) have not taken us to court to protest being singled out as the only supplier of funds to the State of Alaska's Permanent Fund. Something about equality of taxation, would be the reason.
All extractive industries should be taxed at the same rate as 'big oil', and those taxes, regulated at rate, be divided between state government and the Permanent Fund deposits as regulated by present law. By extractive industries I mean Oil and Mining. These are extractive industries with no hope of renewal or replenishment through natural means. Timber and Fishing I would consider renewable resources and as such not liable for extraction tax under law.
Extraction tax would only be levied on those industries which remove valued resources that are not 'regenerative'. Once these non-renewable resources are no longer economical viable, we will be left with holes in the ground with no real use or value. And no further income from those industries. Hence, the Permanent Fund.
I will admit to ignorance or a lack of memory of the tax scheme that led to the formation of the Permanent Fund. But I do recognize that only one industry paying for it, is patently unfair.
I do have more ideas, on how to best use the Permanent Fund proceeds, but will save them for another letter. I welcome all responses, and my e-mail address is published below.
Yours for equitable taxation,
About: Alan R. McGillvray is
a long time resident of Alaska, since 1946. "I happened
to be back when the Permanent Fund was formed, and over the years,
have developed ideas that I think will improve the Fund and its
and do not necessarily reflect the opinions of Sitnews.