Berkowitz Oil Revenue Proposal

Ethan Berkowitz has proposed a new approach for the State of Alaska to use for collecting oil revenue through its two main sources: royalty and taxes. What follows is a quote from his web page.

“The debate about Alaska’s oil and gas revenues has been too much about short-term gain and not enough about long-term interests. The result is a system that fails to optimize outcomes for either the state or industry. Alaska can do better – we can have a system that reduces development risk, increases production and jobs, gives Alaska a fair share of the revenues, enforces budget discipline in Juneau, strengthens the Permanent Fund, and takes the politics out of the state's relationship with the oil industry. Doing better, however, requires a new approach.” – Ethan Berkowitz

I like the goals he has set for the new system. My next article will address how effective his proposal is in accomplishing those goals.