Right now, the oil industry is required to pay a minimum tax rate of 4% for every barrel they pump out of Alaska, and this 4% is not a fixed rate. Corporations can apply subsidies and concessions to reduce the cost of doing business in Alaska, and that minimum 4% tax rate? It’s flexible. In addition to this flexible minimum tax, our current oil and gas tax system has overly generous subsidies that have become unsustainable. The intention was to offer economic incentives to small oil companies as a way to encourage oil production because the Big Three aren’t doing as much exploration and development work and production is down.