JUNEAU, Alaska — An Alaska State Senate committee charged with revamping Alaska's oil and gas tax structure has started introducing amendments after days of hearings surrounding the plan to increase oil production on the North Slope by cutting taxes for oil companies.
There are 17 amendments in all. Sens. Bill Wielechowski and Hollis French (both D-Anchorage) announced nine of those amendments, all hoping to encourage oil company investment.
One proposal from Wielechowski and French would reduce taxes for oil companies that increase production from one year to the next; for each new barrel of oil produced, companies would get a $10 discount off their total production tax value.
The senators also tackle the issue of progressivity -- that is, the idea that oil companies are subject to higher state taxes on oil profits when the price of oil increases. Wielechowski and French propose to cut the highest oil tax rates -- levied at the highest oil prices -- from 75 percent down to 60 percent.