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

john mccain sarah palin anwr drilling photo

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.
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