A recent opinion piece by Dana Raffaniello criticized Representative Kevin McCabe’s gasline tax bill, stating that it barely touches major revenue streams. However, Raffaniello argues that the bill is a giveaway and a loss to Alaska.

Claim One: HB 381 Barely Touches Revenue Streams

McCabe claims that HB 381 barely touches royalties, production taxes, and corporate income taxes, which make up the bulk of Alaska’s revenue. However, Raffaniello points out that the corporate income tax exemption for the midstream entity is structural and permanent, and that the Stapp coalition’s floor amendments cut the AVT rates, resulting in a significant reduction in state property and midstream tax revenue.

The adopted AVT rates of $0.06/$0.13/$0.13 per Mcf produce approximately $145 million per year in combined state and municipal revenue, a significant decrease from the $741 million combined state and municipal revenue projected under current law.

Claim Two: AVT is a Global Norm

McCabe also claims that the AVT is how business is done in virtually every other gas field on the planet. However, Raffaniello argues that this claim is false, citing examples from Qatar, Australia, and Canada, where resource-owning states capture value through state equity, corporate tax, and export duties, rather than AVT.

The combination created by HB 381 does not exist in any other jurisdiction on the planet, making it a global anomaly.

Original reporting: Must Read Alaska (Anchorage) — read the source article.