Alaska Governor fails to get oil tax cut

Oil is big business in Alaska, but the Republican Governor has been unable to get support for an oil tax cut from both sides of the aisle.

Gov. Sean Parnell has tried twice this year to pass legislation that would provide a production tax cut on oil companies, a move he believes is crucial in drawing new business to the state and encouraging companies to continue drilling on the North Slope.

The legislature was reluctant to pass the bill considering big oil companies are posting record profits and viewed the tax cut as corporate welfare. Adding an additional blow was a report by Pernell’s budget director that showed passing the tax cut would create a budget deficit at a time when Alaska has a budget surplus.

Oil production in the state has been on the decline and some lawmakers stated that they would consider a tax break for new drilling companies, but nothing was passed in the most recent legislative session.

Tax breaks encourage businesses to start up or continue conducting business in the state. An Alaska tax attorney can outline the different tax incentives the state offers to spur business growth.

Parnell will re-introduce the legislation in a different session after lawmakers have time to calm down and debate it when “cooler heads prevail.”

Taxes are a complex issue. Whether a business needs help filing their taxes or need to determine the rate they will pay before opening a business an Alaska tax lawyer can help get the answers they need.

If an individual or business needs help with a criminal tax case they can turn to an Alaska tax attorney to help them with audits, unpaid taxes and the resulting fines and penalties.