You should take the time to review the state's revenue sources book. The State of Alaska gets 4 bites at the proverbial oil barrel: 1) production/severance tax; 2) royalty; 3) property tax; and, 4) corporate income tax. All combined, the effective tax rate for Alaska's oil producers are north of 75%. Don't believe me? Talk to DoR.

This year, the state expects to receive over $1.5B from the oil companies. If you combine that with what the Governor expects to bring in from his PF restructuring legislation and new taxes on fuel, you're only $900MM away from balancing our budget. With $3.8B in the bank, we have time to work on common-sense solutions to close gaps and create a sustainable budget if our leaders choose to do that.

Also, nearly all of the tax credits are going to small, independent companies not "big oil companies". And what are getting in return? More competition and multi-billion barrel discoveries that promise future revenue for the state for the next 30-40 years.