A First Look at (Sarah) Palinomics

Jimmy P. at the RNC —"Oh yeah, she gets it," is how one economic conservative described to me last night the economic philosophy of Sarah Palin. By "get it," this person meant that Palin sees the value of low taxes and reduced spending. This, for instance, from her 2006 campaign:

As Mayor and CEO of the booming city of Wasilla, my team invited investment and encouraged business growth by eliminating small business inventory taxes, eliminated personal property taxes, reduced real property tax mill levies every year I was in office, reduced fees, and built the infrastructure our businesses needed to grow and prosper

Among her tax other reductions, courtesy of the Cato Institute, were a $20 million tax credit for film production in the state, a $2 million repeal in tires taxes, a $40 million suspension of the state fuel tax, and a 50 percent cut in the annual business license fee. Plus, there was a $1,200 tax rebate that came from raising taxes on oil companies. Now that last bit sticks in the craw of conservatives. But pro-Palin forces point out that those tax hikes merely reversed some tax breaks obtained by bribery. And take note of what superblogger Cary Wesberry found when she actually read the details of the tax increase.

The tax raises when oil prices are high, and falls when oil prices are low. This give amazing incentive for the oil companies to produce more oil, which increases supply, and lowers prices for everyone including the taxes they themselves pay the state. When oil prices are low the tax moves to a 10 percent tax on the gross, instead of the net tax of 25 percent when prices are high. Instead of, not in addition to. The oil companies in Alaska with the Palin proposal pay the state minus their operating expenses along with pipeline and tanker charges. In this way, the oil companies are not taxed for the cost of doing business.

Me: And don't forget she was apparently a Steve Forbes supporter in 1996 and has spoken favorably of Ron Paul. While economic conservatives surely want to hear much more from her, they see things right now as "so far, so good."