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Posted: Sunday, November 4, 2012 1:00 am | Updated: 11:55 am, Mon Jan 21, 2013.

Nov. 1, 2012

To the editor:

One of the most overlooked proposals this election cycle has been that of tax reform as presented by Rep. Alan Dick. If we want to prosper alongside the oil companies, we must align our interests with them. His simple plan does just this. It provides a strong incentive for increased production and throughput in TAPS without giving up a cent of state revenue.

The plan calls for keeping our current tax plan in place for all barrels of oil produced under the projected decline curve. The difference is, his plan calls for a competitive marginal tax rate for any and all production above that. Essentially, his plan punishes low production and rewards high production without costing Alaskans a dime.

If the oil companies fail to increase production, there is no change in the effective tax structure and Alaskans lose no tax revenue. If the plan works as intended, oil production increases. In that case we collect taxes on all the new oil, in addition to what we would have gotten anyway. We will effectively encourage the development of heavy oil, tight oil, gas-to-liquids or otherwise challenged oil.

Alan Dick is the only major party candidate in District 38 who is a University of Alaska Fairbanks graduate. He has children, grandchildren and great-grandchildren living here. He is fully incentivized to look out for Alaska.

Going forward, he has decided not to promote misleading propaganda but instead proposed a real oil tax reform that won’t give up Alaska’s wealth. Being in the majority party, he is poised to push it.

Folks, as you cut through the political propaganda, I hope you will strongly consider getting behind this pro-Alaska tax plan. For me, it is painfully clear that this is the plan for Alaska’s future and Alan Dick is the vehicle to promote it. I staunchly encourage you to invent in Alaska on Tuesday by voting for Alan Dick.

Aaron N. Lojewski


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