Tax & Spend Versus Drill & Spend: An Alaskan Political Conundrum

For decades, the US State of Alaska has obtained most of it's revenue from oil. As the oil income stream to Alaska slows, as the State acknowledges that it will, Alaska's budget is projected become increasingly reliant upon so-called "non-oil" tax revenue. That means more tax on corporations. And eventually, we speculate, on individuals. Goes to the motive of McCain's VP candidate Alaska Governor Sarah Palin (as pictured) for supporting ANWR drilling.

Alaska's tax revenue grew at an average annual rate of 12 percent from fiscal year 2001 through fiscal year 2006...This growth came from both oil taxes and non-oil taxes. From 2006 to 2011, however, oil tax revenue is projected to decline at an average rate of 2 percent a year, while non-oil tax revenue is projected to increase at an average rate of 4 percent. This divergence means that Alaska's non-oil taxes will become a more important contributor to state revenue as time passes.
Via:: Dan Stickel, Economist, Alaska Department of Revenue; Alaska's Non-Oil Tax Revenue Projections, Image credit::NYT, "Senator John McCain introduced Gov. Sarah Palin of Alaska as his choice for vice president..."More drill & spend stories from the far north.
Alaska's North Slope: Biggest Oil Spill Yet
Big Oil and Other Interest Groups Join McCain VP Palin's Lawsuit ...
Survey: Should America Drill, Drill, Drill?
This Week in Huffpo: Biden, McCain, and Politics
The Empire Strikes Black: McCain Leads Team of Saturn Oil ...
Quote of the Day: Michele Bachmann on "The Perfect Place To Drill ...

Tags: Alaska

WHAT'S HOT ON FACEBOOK