Claman doubles down in defending Hilcorp loophole, then votes to close it

Waffler Sen. Matt Claman, a failed Democratic candidate for governor, continues to oppose the easiest oil tax vote in the history of oil taxes.

He spoke at length on the Senate floor today against a provision to close the Hilcorp loophole, claiming that it was not a loophole.

He voted against closing the loophole. But moments later he flipped his vote, ensuring the gasline bill would pass.

The measure would have died on a 10-9 vote with Claman’s “no” vote.

Claman changing his vote made it 11-9, approving the measure, which is up for a final vote in the House.

Claman has given different answers about why he has opposed closing the Hilcorp loophole.

I suspect his vote today was aimed at improving his chances to become a leader in the Senate next year or a future statewide race.

In his speech claiming that billionaire Jeff Hildebrand of Hilcorp does not enjoy a loophole over the other oil giants in Alaska, Claman said this:

“When they came to Alaska there was no tax on them. There was no loophole. They came up with the existing structure,” said Claman.

“And if we wanted to talk about a loophole, we could talk about a Moose’s Tooth loophole for the pizzeria in Anchorage that is an LLC that I think is quite profitable and keeps building more restaurants around the city.”

“We could talk about a Mount Alyeska loophole because they too are set up as the kind of company that doesn’t pay corporate taxes, but instead would be taxed—if there was a personal income tax—but we don’t have that. We could talk about the Pike’s Waterfront Lodge loophole. They too are an LLC or a different form that is not paying taxes. We could talk about countless construction companies and enterprises across the state,” said Claman.

“So it’s not a Hilcorp loophole. It’s almost every business in Alaska loophole,” said Claman.

Claman said that part of being pro-choice is allowing Hilcorp or any other company to decide on its corporate structure.

Hilcorp is not at all similar to the companies that Claman named. It should be compared to ConocoPhillips and ExxonMobil, companies that don’t enjoy the Hilcorp loophole.

Your contributions help support independent analysis and political commentary by Alaska reporter and author Dermot Cole. Thank you for reading and for your support. Either click here to use PayPal or send checks to: Dermot Cole, Box 10673, Fairbanks, AK 99710-0673.  

Claman voted against the gasline bill at first, after complaining about the provision to close the Hilcorp loophole, claiming it was not a loohole.

When the measure appeared headed for defeat, Claman paused some seconds and changed his vote to en sure it would have passed.