Lonnie Laffen: SB 2336: The facts and the fiction

GRAND FORKS - You can tell Election Day is almost here, as my opponent’s attacks have become more ridiculous every day. But Senate Minority Leader Mac Schneider’s attempt to make readers believe that Senate Bill 2336 was a $1.3 billion oil tax cut goes beyond just distorting the truth (“Republicans can’t explain away support of oil-tax-cut bill,” Page A4, Oct. 29).

It crosses a line whereby he no longer is representing North Dakota’s best interests.

I made the decision when I entered public service to stay away from partisan politics and to never speak negatively against another person. I believe we should attack problems, not people. Negative campaigning takes away the time and resources that would be better spent discussing issues and opportunities.

I will, however, defend myself when wrongfully accused.

Here are the facts.

SB 2336, which was considered during last year’s legislative session, would have closed 10 loopholes in the current oil tax law in exchange for an offsetting 17 percent reduction in the overall oil tax. (A 2 percent reduction on an 11.5 percent oil tax rate is 17 percent, not 30 percent, as Schneider incorrectly stated.)

The increases in this bill outweighed the reductions, and the official fiscal note scored the bill a $40 million dollar net increase in oil taxes.

SB 2336 also would have eliminated price triggers whereby the extraction tax rate would go from 6.5 percent to 0 percent for two years if the cost of oil drops to less than $65.

Oil can’t drop to $65, you say? The price of oil was $110 per barrel six months ago, and today it stands at $82. Wall Street predicts it will slide another $10 lower in the next six months.

The negative impact of $65 oil on North Dakota’s tax revenue would be a loss of $4 billion per biennium. Am I willing to gamble North Dakota’s future? No. But Schneider is; and, unfortunately, SB 2336 was defeated, which means those price triggers still are in place.

So, who do you believe?

Consider this fact: The oil industry opposed SB 2336. Let me repeat that - the oil industry worked hard to defeat the bill. If SB 2336 actually was a $1.3 billion tax decrease for their industry, do you really think they would have tried to kill it?

Which means it’s Schneider, not me, who actually is the one to side with the oil companies.

We were able to pass House Bill 1198, and that bill was signed into law by Gov. Jack Dalrymple. HB 1198 also closed loopholes, and the net effect actually raised oil taxes by $220 million this biennium alone.

Anyone in politics should expect a vigorous debate on issues, but truth should never be the victim of politics. It is clear that my opponents will do anything to win this election, which now includes postcards that demean their opponents.

The people I know at the Legislature are some of the hardest working, most sincere and highest integrity people I have ever met. I can’t imagine demeaning them to win an election.

If I am elected, it will be because my constituents think I can move us in the right direction, not because I have degraded my opponent.

Here is what I believe. Together, we can create a place where our energy and agriculture industries flourish. And, with the revenue created by a robust economy, we will become the best-built, best-educated and lowest-taxed state in the union.

That is the legacy I want to leave for our children, and it’s why I’m running for re-election to the North Dakota Senate.

Laffen, a Republican, represents District 43 in the North Dakota Senate.