stupid people do stupid things, if they are successful the alaskan pipeline could close down and really cut into their paychecks, their over taxation has almost closed it down to less than 50% flow now due to lower amounts of production and exploration which flows to where money can be made. They will tax themselves to oblivion with new sources of energy so cheap in the lower 48
The three largest oil producers on the North Slope—BP, ConocoPhillips and ExxonMobil—have blamed part of the production decline on the tax structure known as "Alaska's Clear and Equitable Share" or ACES. The tax is the signature 2007 legislation of former Governor Sarah Palin, a Republican who pushed through the policy by harnessing populist resentment over federal corruption investigations that led to indictments of six Republican state senators, the late U.S. Senator Ted Stevens, and executives from the oilfield services contractor VECO Corp.
The tax increase has been a windfall for the state, despite declining oil production. While many other states face budget deficits due to years of economic decline, Alaska, among the least populous states, put away $17 billion in a rainy day fund with no state income or sales tax. With tax reform expected to become law this year, Democratic senators say those days are finished. "We will burn through those savings in the next few years," said Hollis French, an Anchorage Democrat.
The Palin-era tax flooded the state with cash, but oil industry representatives say ACES has discouraged investment in Alaska's so-called legacy oilfields. In March testimony to the state Senate, ExxonMobil's tax attorney Dan Seckers called ACES a "major disincentive" to investing in production of the more than 5 billion barrels of oil that remain in the North Slope. "Without meaningful tax reform . . . Alaska can expect production declines to continue," Seckers said.