Tax-And-Spend Palin
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She may have fired the governor’s chef and sold the state jet, but Governor Sarah Palin of Alaska has also presided over a dramatic increase in state spending in the last two years.
Still, she can accurately claim that her state is in good fiscal health, thanks to an explosion of revenues from state taxes on oil industry profits.
Indeed, in her 20 months in office, Palin’s toughest financial decisions involved dickering with the Legislature on creative ways to spend and salt away the billions of dollars in oil revenues pouring into the state treasury.
At times, Palin has been more economic populist than small-government conservative, partly because of Alaska’s unique government financing system.
With no statewide income or sales tax, Alaska funds about 90 percent of the state budget from royalties and taxes on oil producers. Soaring oil prices and a higher windfall oil profits tax – an increase pushed through by Palin, now the Republican vice presidential nominee – have state coffers overflowing with petrodollars. The Alaska oil industry calculates that its annual payments to the state doubled in a single year to $10.2 billion.
Until a few years ago, the state government struggled financially for years because of low oil prices. But that’s all changed. In the first two budget years under Palin, the state government has stashed almost $6 billion of surplus revenues in various reserve and savings accounts in anticipation of future drops in the price of oil. And the state has allocated another $4 billion over two years for a laundry list of new capital projects, mostly small grants initiated in budget requests by legislators for their districts. ~The Boston Globe
Thank goodness that McCain will have Palin to help him battle out-of-control spending in Washington! This is the record of the governor some people wanted to anoint the future leader of the conservative movement and the GOP. The more we are acquainted with what she has done in office, the more it should be clear that the problem with choosing her was not simply a case of promoting her too quickly but of promoting her at all.
Filed under: politics
She is just practicing the same sound economic policies of our soulmates in Venezuela, Kuwait and Saudi Arabia. That is such good training for Washington.
Daniel, 99% of your posts since the Palin nomination start with a quote that you think is wrong — and a long explanation of why it’s wrong. Which is fine – if the quotes are wrong in different ways — but even that’s not the case anymore. Don’t you think it’s getting repetitive?
I’m astounded that no one has raised the point that when Alaska puts a windfall tax on its oil producers, it’s the rest of the fuel-consuming world that pays for it. Alaskans do, too, but they are a miniscule segment of the consumer base and they got a $1,200 petro-welfare check out of it! They only pay for 10% of their own state government as it is.
Probably 90% of my posts on this blog start with a quote followed by what I think about the article being quoted. I suppose I could summarize more of the articles, but if I worried about a repetitive format I would have stopped blogging years ago.
I think I did mention as an aside somewhere that consumers end up footing the bill for tax hikes on oil profits in Alaska, but it’s true I haven’t talked about it much. It certainly isn’t clear to me why people in the lower 48 should be happy that Palin just helped discourage the oil production she insists is so necessary to our national security.
And she led Wasilla into a pile of debt through her hastiness and mismanagement.
The GOP long ago abandoned principle, of course, but with their exuberant reception of Palin, they’ve abandoned even the pretense of principle.
“they’ve abandoned even the pretense of principle”
You won’t get much of an argument from me, but I would say that the zealous, almost unanimous cheering for Bush during 2001-2005 showed that they had abandoned the pretense a while ago. They just hadn’t had the opportunity to show it.