Associated Press Calls Palin A Hypocrite, Claims Alaska’s Permanent Divided Is Socialism

Obama is smarting from (correct) assertions from the McCain/Palin camp that he’s a wealth-redistributing socialist. So the Associated Press rides to the rescue with a “fact check” that tries to paint Palin as a hypocrite on this issue because of Alaska’s permanent dividend fund.

Republicans John McCain and Sarah Palin summon antidemocratic images of a communist state to attack Democrat Barack Obama’s tax plan and his comment about spreading the wealth around. But in her home state, Palin embraces Alaska’s own version of doing just that.
Palin and McCain seized on a comment Obama made to Ohio plumber Joe Wurzelbacher, who asked about his tax plans.
Obama wants to raise taxes on families earning $250,000 to pay for cutting taxes for the 95 percent of workers and their families making less than $200,000. “I think when you spread the wealth around, it’s good for everybody,” he told Wurzelbacher.
McCain said that sounds “a lot like socialism” to many Americans. Palin has derided the Illinois senator as “Barack the Wealth Spreader.”
But in Alaska, Palin is the envy of governors nationwide for the annual checks the state doles out to nearly every resident, representing their share of the revenues from the state’s oil riches. She boosted those checks this year by raising taxes on oil.

First, the permanent dividend fund was set up in Alaska in 1976. Palin was still in high school.
Second, the permanent dividend fund isn’t wealth redistribution. It’s a managed investment fund based on royalties paid to the state of Alaska by oil and mineral companies in exchange for access Alaska’s natural resources. Distributing that royalty money to the citizens of Alaska, as opposed to the politicians spending it like they do in other states and at the federal level, is hardly socialism.
Third, Palin did raise taxes on the oil industry to fund an additional $1,200 one-time payment to Alaskans. Was that a good thing? I don’t think that raising taxes in general is a good idea, and I didn’t agree with Palin when she raised the taxes, but again this is hardly socialism. This isn’t the “take from those who already pay the most in taxes and give to those who pay almost nothing in taxes” nonsense Obama is selling as his tax plan. It was, basically, an additional royalty or use fee levied on the oil producers to fund a payment to every single Alaskan citizen (including children).
It wasn’t good policy, but it doesn’t make Palin a hypocrite on wealth redistribution either.

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  • http://Array di butler

    I do agree it is a weird program, but this has been something that was agreed to by the Alaskans, use of their land for a stipend. I don’t really think it is a big deal, every state seems to have strange policies and way they choose to do things. Mass. has that stupid insurance deal, SF,Cali has the gay marriages, etc. I say if it’s working o.k. for them, and it isn’t hurting the lower 48, let them have at it. I read somewhere one reason that she has enemies in AK is because she was so opposed to “Uncle Ted,” and for some reason those people love him. He probably will end up getting a buttload of votes if he doesn’t drop out.

  • di butler

    This is way over my head. I see what you mean, liqwid, this is kinda squishy. I really, really support having business run on a state level as much as possible. I see what you mean by looking at each state to see what works and what doesn’t. I’ve never called Obama a socialist, but I have to say that what I remember from my econ classes, his tax program seems to fit that bill.

  • robert108

    You missed it, Sparkie. That money is disbursed equally to all citizens, so it is not available for govt spending. It is also not used for any sort of class envy based social engineering, because everyone(even the children) get a share.
    Under socialism, the State would own the oil companies; in this case, they don’t.

  • http://sayanythingblog.com/ likwidshoe

    You’re letting your weak grasp of the facts show.

    Seriously doubting the proposition that the land of Alaska is unwanted and/or unsaleable is far from a “weak grasp of facts”.

    This land is in the middle of nowhere.

    So Alaska doesn’t mind that the federal government owns most of their state?

    We both know the answer to that question is no, “middle of nowhere” or not.

    Royalties on the exploitation of that land hardly seem on par with socialism, where government owns the means of production.

    “Royalties”, “fees” – it’s all a redistribution tax paid by industry to “the people” for use of “the people’s land”.

    If this was in Russia or even Canada, there wouldn’t be any question as to what to call such a situation.

    Are we taking the anarchy right now and opposing all taxes as a knee-jerk reaction?

    Not at all. As someone who has watched you argue against this very argument tactic for years now, I expected a better line of argument.

    Personally, I prefer that the state own no property outside of military, state government offices, road right of ways, and the like. Private property as opposed to government property, which is hardly the province of the anarchist.

    Better that those royalties should go directly back to the taxpayers than be used to expand the size of government.

    There is some merit to that, but then again – the state government’s role is expanded by the policy alone.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    The question is what to do with royalties that derive from property held by the state.

    Do you spend it on unnecessary government services or do you give it to the citizens.

    What would you have them do Lik, give the land away? Keep the money? The former is hardly different from what they are doing and the latter wouldn’t help anyone that isn’t a welfare case.

  • http://bullwinkleblog.com/ Bullwinkle

    The University of Texas has a permanent fund from royalties. The dividend it pays goes only to help lower the cost of education, and then only for students in the UT system.

    Alaska’s permanent fund could do either of two things, return money to taxpayers or pay it into the state’s general fund to lower taxes. Either way the only thing that is happening is the people are paying less in taxes. Paying less in taxes is not socialism.

    Since Sarah didn’t establish the permanent fund she’s not responsible for it and the law that set it up was pretty specific about how the fund operated. She’s just following the law that was established when she was in high school.

    For her to do otherwise would be a criminal act.

    Saying that returning money to taxpayers is socialism means that the IRS is the biggest socialist operation in the world.

  • http://sayanythingblog.com/ likwidshoe

    Second, the permanent dividend fund isn’t wealth redistribution. It’s a managed investment fund based on royalties paid to the state of Alaska by oil and mineral companies in exchange for access Alaska’s natural resources.

    Splitting hairs.

  • http://sayanythingblog.com/ likwidshoe

    Bullwinkle – And capitalism doesn’t?

    Kind of a weak argument.

    That is a weak argument.

    It’s yours.

    Socialism says the government owns ALL the land and everything on it. Big difference.

    So, fine then. No one of you gets to call any Democrat a socialist ever again. Or Marxist.

    Even the Democrats who call themselves socialist usually don’t take it as far as the government owning all of the land and everything on it.

    Meanwhile, some of the rest of us will continue to recognize that there are creeping degrees of socialism and will continue calling a spade a spade. Republican endorsed policy or not.

    di butler – I think that if Sarah went against this policy, Likwid, she would be strung up.

    No doubt about it. The people of America have shown that they love getting something for nothing from the government and that’s a tough nut to crack.

    But Palin enthusiastically supports this policy and therein lies the difference. She doesn’t fight it, she doesn’t go along to get along (politics being the art of compromise), she doesn’t even call it for what it is, but rather she supports it. And then she goes further to harangue Obama for his “redistribution” ideas.

    Now I support the woman on most issues and will vote for her and McCain next week here in the important fraud-infested state of Ohio, but the woman is a bit of a hypocrite on this one.

    I’d prefer to just leave the poor Alaskan people alone.

    By all means, through the wonders and strengths of federalism, Alaskans have the right to make any policy they wish. It’s their state. They can have the state own the land and then charge the producers “royalties” for extracting resources. They can kid themselves that they are getting something “back”, when they’re really just taking money they did nothing to earn. And we, as energy consumers, will continue to pay for it in higher energy costs.

    That said, I hope the conversation about Alaska, the other 45 states, and four commonwealths do not stop. Far from leaving them alone, let’s examine what they are doing, see what works, and decide whether or not we want such policies in our own states closer to home. We have 50 grand experiments to examine.

    robert108 – Socialism is the ownership of the means of production by the State(meaning the entire country, not just one part of it).

    I’ll remember that as you call Obama a Marxist. Funny that you don’t hold him or any other Democrat to the same standards. What’s that about?

    robert108, I could take you and your positions – scratch that; your arguments – a bit more seriously if I didn’t believe you to be a dishonest partisan. That we usually fall on the same side in issues of politics won’t change that.

  • tothestars2

    First, the permanent dividend fund was set up in Alaska in 1976. Palin was still in high school.

    Just one of those pesky facts that are not going to get in their way!

  • http://sayanythingblog.com/ likwidshoe

    First, the permanent dividend fund was set up in Alaska in 1976. Palin was still in high school.

    That’s immaterial as to whether or not Palin supports the policy.

  • http://SayAnythingBlog.com The_Whistler_ofnd

    Saying that returning money to taxpayers is socialism means that the IRS is the biggest socialist operation in the world.

    Well it might be but not because we get a refund.

    Lik, as BWinkle points out can the state invest money it holds in trust funds or must it divest itself of that right away.

  • tothestars2

    That’s immaterial as to whether or not Palin supports the policy.

    What policy, socialism? Nothing here says she supports socialism. What’s your point?

  • http://sayanythingblog.com/ likwidshoe

    The land is owned by the state. They’d pay royalties anyway. Giving those royalties to the taxpayers (in an even manner, every single Alaskan including children gets the same amount) is hardly socialism.

    That’s pretty much the definition of socialism.

    Collective ownership by the state + government administration of the means of production + egalitarian payout to all citizens = such a thing is usually referred to as socialism by those on the right as well as the dictionary.

  • http://bullwinkleblog.com/ Bullwinkle
  • http://SayAnythingBlog.com The_Whistler_ofnd

    What’s your solution Lik, give the oil away?

  • http://sayanythingblog.com/ likwidshoe

    Alaska takes in $1.84 in federal taxes for every $1.00 they pay.

    Why are the citizens of that state getting money “back”?

  • http://sayanythingblog.com/ likwidshoe

    So sell the state land on auction or just give it away?

    Even though I bristle at the notion of a state auction of land it is not supposed to own, that’s probably the way to go.

    The feds could do the same thing and pay off the entire debt. What do the feds own? It’s something like 61% of all land west of the Mississippi. That’s atrocious.

  • http://sayanythingblog.com/ likwidshoe

    Rob – If the state “owns” the land because nobody else wants it, is that really socialism?

    I can’t believe that nobody wants to own the land in Alaska, so therefore the state government gets it by default. Seeing as how the state is in a constant battle with the feds over their onerous ownership of the state, the proposition carries little weight.

    In any regard, where is everybody else’s check? If we’re going down the “everybody owns it” route, every American citizen owns 69.1% of Alaska. It’s not fair, but then again – the precedent has been set.

    Also, if the oil companies want to build a massive pipeline across the entire state shouldn’t the taxpayers get something in exchange for all that right of way?

    Are road right of ways next?

    I’m thankful that West Virginia doesn’t play the “permanent dividend fund” with coal, seeing as how it powers almost the entire Midwest. It would be just another redistributionist tax.

  • robert108

    That’s pretty much the definition of socialism.

    No, it isn’t. Socialism is the ownership of the means of production by the State(meaning the entire country, not just one part of it). This is federalism, where each State is free to do business as it chooses. If oil companies want to do business in Alaska, they pay fees and royalties for that privilege. How that revenue is disbursed is not socialism in any way. In fact, giving it equally to all citizens, rather than it being spent by the State govt on wasteful social programs, is a much better and freer way to do it than the usual socialistic methods of big govt.

  • http://sayanythingblog.com/ likwidshoe

    Bullwinkle – Either way the only thing that is happening is the people are paying less in taxes.

    Business pays a tax. “The people” are receiving that tax. Far from “paying less”, the state is just shuffling the tax bill to the producers.

    Paying less in taxes is not socialism.

    Socialism defines who owns the land, who gets the profits (via the “fee”, “dividend fund”, or whatever they decide to call it), who pays, and what is lost. The answers are “the people”, “the people”, business, and private property freedom.

    Since Sarah didn’t establish the permanent fund she’s not responsible for it…

    I’ve yet to see anybody argue that Palin is responsible for this scheme. What is at issue here is that she supports it.

    Saying that returning money to taxpayers is socialism means that the IRS is the biggest socialist operation in the world.

    Now you’re talking and thinking like a socialist!

    The key phrase that jumps out at me: “returning money”. That’s how Democrats talk when they bring up raising taxes. It’s always “returning” the money or “recovering” the money, when the fact of the matter is that government isn’t returning anything. They’re redistributing it.

    That oil in the ground is useless until the capital, genius, and work goes into getting it out of the ground. “The people” of Alaska – the average family along with the two year old baby – do nothing to extract that resource. They just “own” the land of Alaska in the mindset that everybody is a shareholder.

    Such a thing has a name, you know…

  • http://SayAnythingBlog.com The_Whistler_ofnd

    So sell the state land on auction or just give it away?

    Or give every citizen of the state a share of each parcel so that they can sell it themselves?

  • http://sayanythingblog.com/ likwidshoe

    The Whistler – What’s your solution Lik, give the oil away?

    The same solution I always have – private enterprise, private ownership, private property. No state control, no state ownership, no state property.

    And with the oil companies, such a thing means that you can publicly buy your own private shares.

  • di butler

    I see both sides of this arguement. I just don’t think it is a big deal. Some states have weird laws. I think that if Sarah went against this policy, Likwid, she would be strung up. Everything I have seen and heard the Alaskans are happy with this program. I think this is small potatoes compared to the gay marriage prop., that stupid socialized Mass health care, etc. I don’t know, I may not be seeing this the same way as you guys. I’d prefer to just leave the poor Alaskan people alone. Haven’t they got it bad enough already? I mean the temperature gets around 40 below!

  • http://bullwinkleblog.com/ Bullwinkle

    Socialism defines who owns the land, who gets the profits (via the “fee”, “dividend fund”, or whatever they decide to call it), who pays, and what is lost. The answers are “the people”, “the people”, business, and private property freedom.

    And capitalism doesn’t?

    Kind of a weak argument.

    Socialism says the government owns ALL the land and everything on it. Big difference.

  • robert108

    This is just a bullshit attempt at justifying Obama’s obvious Marxism by distracting with something else. It’s the usual “look over there” type of crap, the usual leftie comeback when the facts are not on their side.

  • robert108

    I’ll remember that as you call Obama a Marxist.

    Wrong again; Marxism does involve the State owning everything; it is the most radical form of socialism. There are much milder types of socialism, like Fabian socialism, where the State only owns the major means of production, like heavy industries, leaving smaller businesses in the hands of private individuals. This form is the one pretty much practiced in England. I call Obama a Marxist because he believes in Marxist ideology. The giveaway was his statement to Joe the Plumber wherein he said that sharing the wealth would be “better for everybody”. Marx believed unequal compensation was the source of all unhappiness and unrest, and so wanted equal outcomes for all the proletariat.
    You confuse ideology with action here, maybe deliberately. You obviously regard Alaska’s oil revenue fund socialistic, but that doesn’t make it socialism. I disagree with you on that, for my previously stated reasons.
    I don’t care what you believe I am, btw. That was a bit of unnecessary personal attack that has nothing to do with the facts here.
    You are welcome to continue in your animus; it’s your problem, not mine.

  • http://sayanythingblog.com robport

    Nope.

    The land is owned by the state. They’d pay royalties anyway. Giving those royalties to the taxpayers (in an even manner, every single Alaskan including children gets the same amount) is hardly socialism.

  • http://sayanythingblog.com robport

    I can’t believe that nobody wants to own the land in Alaska, so therefore the state government gets it by default. Seeing as how the state is in a constant battle with the feds over their onerous ownership of the state, the proposition carries little weight.

    You’re letting your weak grasp of the facts show.

    This land is in the middle of nowhere. Royalties on the exploitation of that land hardly seem on par with socialism, where government owns the means of production. Are we taking the anarchy right now and opposing all taxes as a knee-jerk reaction?

    Better that those royalties should go directly back to the taxpayers than be used to expand the size of government.

  • http://sayanythingblog.com robport

    If the state “owns” the land because nobody else wants it, is that really socialism?

    Also, if the oil companies want to build a massive pipeline across the entire state shouldn’t the taxpayers get something in exchange for all that right of way?

    C’mon. One of these things is not like the other.

  • http://sayanythingblog.com/readers/author/sparkiearbuckle sayanything-81

    there is an ‘n’ in dividend.

    i think the point i that any executive can run a state with that much extra cash on hand. it’s like shooting wildlife from a helicopter. easy peasy.

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