Berkowitz going rogue on ACES
From the Alaska Dispatch: The Democratic gubernatorial primary race is becoming less of a political lovefest these days. Some local Dems are annoyed with former lawmaker and gubernatorial contender Ethan Berkowitz for suggesting the state should think about replacing the ACES oil tax structure with a different method.
The dustup began about a week ago with an Anchorage Daily News article airing the views of both Berkowitz and state Sen. Hollis French, another Democrat in the primary race, on how to get the most bang for the buck out of oil taxes. Berkowitz, in the story as well as in commentary recently published in various media outlets, suggested replacing the tax law known as Alaska’s Clear and Equitable Share with a field-by-field royalty structure.
Since then, local progressive bloggers and others have cried foul, basically accusing Berkowitz of selling out his Democratic colleagues who had fought hard for and helped pass the controversial legislation in 2007.
And on Wednesday, a handful of local Democratic lawmakers stood shoulder-to-shoulder with French in a press conference at French’s campaign headquarters to blast Berkowitz for his abdication of what they see as a key Democratic victory.
French reminded the small gathering of reporters that ACES stemmed from an effort to reform the “corrupt” taxing system that had afforded at least one major North Slope field a nearly-zero tax rate. ACES, which increased the tax rate particularly in years when oil process are high, also includes tax credits for exploration.
French and other Democrats said under ACES the state has been able to sock away more than $5 billion in budget reserves while paying for roads and schools, among other things, that might not have been funded before. They contend the tax structure actually stimulated North Slope employment, although oil companies dispute that contention.
“In my view, this is the single biggest issue in the state,” French said.
Click here for the full story.
