Difference Between a Liberal and a Fiscal Conservative
Oil prices are down and therefore revenues raised from taxes on gasoline and oil are going to be less than projected. This illuminates an interesting method of governing in states like Texas, Alaska and Oklahoma where Governors are faced with some tough decisions.
In Alaska Governor Tony Knowles (D), a liberal, has a $1 billion shortfall and is talking taxes, increasing the liquor tax, implementing an income tax (Alaska being one of seven states without such a tax) and raising the gas tax. Lest we forget the state is also blessed with a healthy rainy day fund ($1 billion).
In Oklahoma Governor Frank Keating (R), a fiscal conservative, has a similar dilemma and is talking spending. He has ordered agencies to slash their budgets by $25 million so he can cut oil taxes in a special session. He has proposed that the oil tax be reduced from 7 percent to 1 percent, depending on the price of crude oil.
In Texas the Bush administration is drafting a bill to give the industry a tax break on oil and gas production until energy prices strengthen. "This is about survival," Commissioner of the Texas Railroad Commission Tony Garza, said. "Today with the price per barrel where it is, there is simply no way the domestic energy industry, in particular the independents in our state, can stay competitive with foreign oil," Garza concluded.
Conclusion; liberal raises taxes and punishes the oil and gas industry during a tough time and conservatives lower their tax burden and give them a much needed break.
conservativenews.org |
