GOVERNOR PALIN'S BRIEFING

Today at the Governor’s Conference Room at the Atwood Building in Anchorage, Governor Palin and her staff held a briefing on “ACES,” her plan for a revised petroleum production tax (PPT) to replace the legislation passed last year. She stated that the PPT wasn’t performing as expected, and there were loopholes that would permit inappropriate deductions from the net such as for repair of corroded pipes. The “elephant in the room” is that the vote for the current PPT has been tainted by the ongoing legislative scandals involving legislators under indictment or trial for bribery current PPT.

I think a revisit to the oil tax issue is an important step in restoring trust in the legislative process. Some colleagues disagree with the need to revisit the tax because they were not involved in any wrongdoing, because their vote was “proper and honest.” Well, me too! However, in politics, perception is reality. The scandals have done great harm to perceptions of the legislative process. The legislation needs to rebuild a foundation of trust with constituents.

A large bipartisan contingent of House members attended her briefing - and I thought it was well done. Obviously, we have not yet seen the actual bill from the governor, and there may be a “devil in the details.” But I agree with the concept of a new look at the oil taxes. It’s likely the governor’s bill can be tweaked by the legislature to make it even better. At this point, I’m very positive about what Governor Palin’s administration is trying to do. I hope we can pass a good version of ACES out of the House, and I hope the Senate will give equal fair consideration of the bill.