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In Alaska, where oil is king, governor's plan to offer oil companies a tax break hits a wall
JUNEAU, Alaska (AP) ' Oil long has been king in Alaska, but the state's Republican governor is having trouble finding support for a tax break he believes is critical to ensuring it remains so.
With a stunning defeat in the state Legislature this week, Gov. Sean Parnell has failed twice since last year to reduce production taxes on oil companies, a strategy he believes is crucial to bringing in new companies and ensuring those already in the state invest more and boost North Slope production. That would ensure that Alaska's financial lifeline remains healthy.
Oil accounts for roughly 90 percent of unrestricted state revenue in the resource-rich state. It has helped make possible yearly dividend checks that Alaskans get just for living in the state. And recent flush years have created budget surpluses.