Senator says proof of tax cut benefits needed

JUNEAU -- Senate President Gary Stevens said Tuesday the governor has failed to sell his plan to cut oil taxes by billions of dollars, and he expects it to die.
"It does seem to me like the administration has not done a particularly good job of defending its bill. They have not explained the repercussions of the bill. They have not been able delineate specifically the advantages that we get if we do away with those taxes," the Republican from Kodiak said "It all seems to be a hope, a wing, and prayer."
"The question has always been, show us. What is the proof, what do we get if we give away $2 billion a year. What does the state get out of it. And there have not been adequate answers," he said.
The governor didn't agree to a request for an interview but responded to Steven's remarks in an email.
"Sen. Gary Stevens' remarks are a bit shocking given he was in my office less than a week ago talking about a potential compromise to increase oil production and jobs for Alaskans," said the email from the governor. "His statements today appear to reflect those in his caucus who want to tax more so they can spend more. I'm not going to stand by and watch them grow government coffers at the expense of feeding Alaskan families." Senate leaders are more interested in a proposal by Kenai Republican Sen. Tom Wagoner than what Parnell is talking about. Wagoner has a bill offering tax credits for oil and gas exploration, an approach that supporters of Parnell's tax cut proposal described as a just "baby step."
"I don't think a baby step is in the right direction. I don't think it sends a strong enough message to the oil industry that we want them here, we want them in Alaska," said House Speaker Mike Chenault, a Nikiski Republican.
Wagoner responded that it might be considered a "baby step" compared to Parnell's sweeping tax cut.