It’s commonly stated that Alaska has the most complicated oil tax structure in the world. The result is massive giveaways to the oil industry. We are working to end state support for fossil fuels so that oil companies owned by billionaires from outside of Alaska will finally pay what they owe.
make oil and gas pay what they owe
It’s not fair that the wealthy people responsible for creating the climate pollution that is harming Alaskan communities are being given state money that should be used to benefit Alaskans.
Meanwhile, the state is severely underfunded, with essential services being cut - like education, rural public safety, mental health services, transportation, and energy infrastructure, among other things.
The oil and gas companies operating in Alaska are already very profitable and deserve to pay their fair share for making billions on Alaska’s resources. We’re fighting to make sure they have to pay what they owe where they do business, just like everyone else.
making oil and gas pay what they owe means:
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While most large companies pay a state corporate income tax, certain pass-through entities, called S corporations (“S corps”), do not pay any income taxes in Alaska due to a loophole in the state’s tax code.
The Alaska Constitution instructs the Legislature to ensure that the Alaskan public gets the “maximum benefit” from the use of our natural resources. The S corp tax loophole is preventing us from getting that benefit.
Closing the S corp tax loophole is estimated to bring in over $100 million per year through 2030, funds that are desperately needed for the state budget. Right now, those funds are going to a billionaire in Texas.
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The Maximum Per Barrel Tax Credit is a tax deduction that is based on the market value of oil (the lower the market value, the less profit for the industry and so there is a higher tax deduction and vice versa).
Decreasing the Maximum Per Barrel Tax Credit from $8 to $5, along with making it so that oil producers cannot claim more than they spend on capital investments, could increase state revenue by up to $400 million annually (ADN Article), funding essential public services like education, safety, mental health, energy system upgrades and renewable energy projects.
Fund the Fight:
Any amount helps. By donating, you enable us to:
Bring community members to Juneau to speak directly to legislators
Pay artists to share the message in creative ways
Host events to inform the public on issues surrounding subsidies and help new activists get involved
Make approachable social media videos breaking down how subsidies work in the Alaskan tax code
Bring our message on the road, organizing across the state
Train community members in campaign strategies, organizing, and issue advocacy
