Okay, can someone here help me out with Palin's stand on windfall profits tax for oil companies? Am I right in thinking she was for them in Alaska when she was governor but is against them now that she is running for VP?
Republicans in Congress this June united to defeat a proposed windfall tax on oil companies, deriding it as a bad idea that would discourage investment in U.S. oil exploration.
Things worked out far differently in the GOP stronghold of Alaska, a state whose economic fate is closely tied to the oil industry.
Over the opposition of oil companies, Republican Gov. Sarah Palin and Alaska's Legislature last year approved a major increase in taxes on the oil industry a step that has generated stunning new wealth for the state as oil prices soared.
. . .
Obama supports a federal windfall-profits tax, with the proceeds used to provide rebates of $500 or $1,000 to taxpayers. "Increased domestic oil exploration certainly has its place," Obama said last Monday in Michigan. "But it's not the solution" to America's energy problems, he added.
McCain has blasted the idea, saying it would "increase our dependence on foreign oil and hinder exactly the same kind of domestic exploration and production we need."
In Alaska, the willingness of Republicans to tax the oil industry reflects unusual political developments.
. . .
In the fall primary of 2006, Palin upset Republican incumbent Gov. Frank Murkowski, whom she criticized for giving too much of a break to the oil industry.
Then last year, Palin introduced a graduated tax pegged to increased oil prices. The state Legislature modified her proposal to increase the state's take even further.
The bill's proponents a coalition of Democrats and maverick Republicans argued that oil production was declining in Alaska, and that the lower tax rate under previous governors had done little to spur additional investment in the state's oil industry.
seattletimes.nwsource.com
In August the Governor praised Obama's energy plan but:
The Governor did question the means to pay for Obamas proposed rebate a windfall profits tax on oil companies. In Alaska, the states resource valuation system, ACES, provides strong incentives for companies to re-invest their profits in new production.
Windfall profits taxes alone prevent additional investment in domestic production. Without new supplies from American reserves, our dependency and addiction to foreign sources of oil will continue,-- Governor Palin said.
http://gov.state.ak.us/
archive-59841.html
Would she support Obama's plan for windfall taxes if they included incentives for re-investment (assuming his plan doesn't already do this)?
I'm confused. No doubt I'm missing something obvious. Can someone clarify this for me?