The Great Alaskan Heist – Opinion: Vote Yes on Prop 1, August 19

The Great Alaskan Heist

Rarely in modern American politics do we see a more blatant example of corruption than the passage of Alaska’s Senate Bill 21 (SB21). Through this oil tax law legislation, Governor Sean Parnell a former chief lobbyist for ConocoPhillips engineered a multi-million dollar transfer of wealth from the citizens of Alaska to his former employer and two other multi-national oil corporations, ExxonMobil and BP. Two state senators who had spoken in opposition to this raid were gerrymandered out of office. Sidestepping the obvious conflict of interest, two other state senators who are concurrently ConocoPhillips employees were allowed to vote on this bill that grants billions of dollars of tax benefits to their employer. The bill passed by one vote. And that, notwithstanding the recent jailing of several legislators for corruption, is how oil politics works in Alaska.

Had this new law been in effect for the last 7 years during which time Sarah Palin’s ACES tax was in place, the state treasury would have received approximately $8 billion less in taxes. The new law is a gift—with no strings attached—to the richest corporations in the history of the world.

Six Months of Saturation Ad Bombing

The multinational oil companies have tried their best to crush Alaska’s grassroots citizen opposition. They’ve spent over 13 million dollars already. Together all the grassroots groups have spent less than $400,000. The companies are outspending the citizen coalition by more than 40-to-1. Around the clock, TV, radio, newspaper, mailers, and the internet bombard the Alaskan public with the oil companies’ message. Even one TV ad is beyond the budget of the citizen groups. Never in history have Alaskans been the target of this much manipulation via the media. It is an avalanche of propaganda. Let’s not be buried by it.

Vote Yes on Ballot Measure 1, August 19.

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This opinion piece was written and submitted by the Vote Yes group, it does not necessarily reflect the views of Restoring Liberty or its publishers.

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Almost 90% of Alaska’s unrestricted revenue is from the taxes and royalties gained from the production by primarily BP, Exxon and ConocoPhillips of oil and gas on state owned and leased land. The stage is set – Alaska is beholden and dependent on a monopoly of 3 of the wealthiest corporations in the world. We fondly, or not so fondly, refer to them as the Big 3.

Right now, oil and gas funds our state and fuels our economy. We have other industries that provide jobs, but very little state revenue. No state income tax could ever be large enough to significantly replace oil revenue. It is imperative that we provide a business friendly environment to the oil and gas industry, while gaining the maximum value from the production of our finite fossil fuels, now and into the future. This weighty responsibility is entrusted to our elected officials. Elected officials who become susceptible to political influence and who generally lack the experience and knowledge base to steer clear of corporate obfuscation and manipulation. Depending on their positions relative to the oil industry, thanks to the Big 3 political candidates can enjoy massive corporate largess or, alternatively, face opponents with overwhelmingly outsized campaign coffers. It becomes very difficult for a politician to distinguish between his own best interest and the companies’ best interest and the state’s best interest. In short, our state is vulnerable to corruption.

Rarely in modern American politics do we see a more blatant example of corruption than the passage of our new oil tax law, the so called More Alaska Production Act. When Governor Sean Parnell first introduced the new oil tax law, the legislature failed to pass it. Enough legislators from both parties were unconvinced that it was appropriate tax reform and good for the state.

However, Governor Parnell reintroduced the tax reform during the next legislative session. Notably, this legislature was tainted by egregious gerrymandering determined to be illegal by the court but allowed to prevail for the election of this legislature, during which 2 state senators outspokenly against the tax reform bill were voted out of office. Furthermore, 2 senators who are ConocoPhillips employees voted on the bill even though their personal conflict of interest was clearly evident. The bill passed by one vote.

Governor Parnell, a former ConocoPhillips lobbyist, successfully shepherded through this new tax bill that offers the Big 3 (including his former employer) a multi-billion dollar tax break during a period when they were experiencing unparalleled profits. Had this new tax law been in effect for the last 7 years, our state treasury would have received approximately $8,000,000,000 less in taxes from the oil companies. Yes, that is $8 billion.

Now we are experiencing budget deficits and current projections reveal that we will be maintaining budget deficits for the foreseeable future and will burn through all our hard fought and guarded savings within the next 20 years or less. There is no backup plan.

This is how oil politics works in Alaska.

Democracy or Corporatocracy

Who is left to balance the message of the Big 3 and their corporate interests with the best interests of Alaskans and the future of this state? The voice of the people must be heard.

We are engaged in a battle to repeal this new tax law, also referred to as SB 21.

After passage of the oil tax law, enough citizens statewide were outraged that, within a few months time, some 50,000 petition signatures were collected to put a “repeal SB21” referendum on the ballot. Successfully accomplishing the required hurdles to get the repeal referendum on the ballot is in itself an amazingly laudable feat.

Those volunteers who worked tirelessly last year to collect the needed signatures, are again called upon to organize and run a referendum campaign across a state more than twice the size of Texas with a population less than 800,000 on a shoe string budget against some of the most powerful and organized corporations in the world.

The Big 3 have contributed over $11 million to combat this repeal effort and together with money from other industry related businesses and a handful of individuals, they have raised over $14 million. Hundreds and hundreds of Alaskans have contributed to support the repeal effort and have raised just under $500 thousand.

The Big 3 have come with tanks and Alaskans are fighting back with sling shots. Despite the overwhelming odds, the repeal effort refuses to be crushed. This is a democracy of the people and for the people of Alaska, not of and for the multi-national corporations.

Be a part of your democracy and vote YES on ballot measure 1, August 19.