Posted on 12/13/2015 12:48:18 PM PST by Kaslin
Things aren’t going very well in Juneau these days and unlike the more nuanced arguments taking place in other states, Alaska is dealing with a problem which can be summed up in one word: money. The state spent a long time riding high on sustained, high oil prices which greatly impact their budget, but the sunset of the oil boom has led to a long term collapse in those revenues and Alaska needs to come up with some more cash. Their part time legislature will be returning to session next month and they will be facing a wide ranging proposal from Governor Bill Walker to fatten up the state coffers through new and increased taxes. (KTUU News)
Gov. Bill Walker is proposing a personal state income tax as part of his plan to close Alaska’s $3.5 billion budget gap, he announced Wednesday.
The administration estimates that having a majority of residents pay directly into state government for the first time since 1980 would generate an additional $200 million of state revenue each year…
In addition to an income tax, Walker's new plan to pay for state government calls for several revenue-generating steps, including:
- A 2 percent increase on the top mining tax bracket ($12 million).
- A 1 percent commercial fishing surtax ($20 million).
- Elimination of tourism tax exemptions ($15 million).
- An additional fee for every alcoholic drink sold ($40 million).
- A $1 increase for tax on a pack of cigarettes ($27 million).
You may remember Walker from his early profile as a Republican who later bolted the party to run as an independent. From that mixed-breed platform he adopted a patchwork of policies from both liberal and conservative playbooks, including opposition to new mine construction, global warming prevention and Obamacare Medicaid expansion alongside support for oil and gas pipeline construction, offshore drilling and expanded gun rights. How this massive tax plan fits into that ideology is anybody’s guess.
His problem is that oil used to reliably sell for 80 to 100 dollars per barrel or more. It’s now been below 50 for quite a while and recently hit $38. Adjustments obviously need to be made, but this clearly isn’t a conservative reflex on display in response to the economic shortfall. Digging in immediately and reaching for even more sin taxes is historically a loser. (Alaska already has among the highest taxes in the nation for beer and wine. If they pass this tobacco tax they’ll be in the top five in the nation in that category.) Installing a progressive state income tax will simply take an historically red state and make it look all the more blue.
The Governor is proposing some cuts in spending to Alaska’s generous budget for education, health and social services, but the state GOP is saying it’s not going far enough and doesn’t realistically deal with their budget needs. Others would like to see him exploring some version of online sales tax enforcement. The one area of agreement seems to be the pinch residents will feel in their wallets if their annual checks based on the resource royalty payments fund (from oil revenues) are slashed as proposed. That’s one area where the government as an entity and the taxpayers are joined as partners in the good times and the bad, so when commodity prices dip, everyone feels the pain.
The legislature has a big job in front of them this year. The voters will have an equally important task in deciding if they elected the right man for the job in terms of handling the state purse when the hard times hit.
Gosh, here is a novel idea. Why not try sending less?
Taxing someone’s labor is only second to taxing someone’s property in terms of pure governmental evil.
What happened to the surplus brought on from the oil drilling?
Ditch the PFD.
You asked: “Why not try sending less?”
What are they sending and to whom? Taxes to Washington?
They put the surplus in a big investment pot called the permanent fund and dole out checks to every resident annually.
Miss her yet?
Dem elections do have dem consequences.
When gov-co cries for yet more money, I mention the idea of spending less. Most people act like I’m speaking in some alien language.
I’d love to see a politician tax added to all politicians and a flatulence tax on all DemocRATS in order to help “save da planet.”
You are one of the few people who has properly identified what an “income tax” actually is - a tax on labor.
A very good argument could be made that the 16th amendment (income tax) is in direct conflict with the 13th (involuntary servitude).
If the definition of slavery is an income tax of 100%, then any lesser percentage is but a matter of degree.
you see, you and I have large masses in our heads.
When I did tons of overtime that large mass said “this is not money that will continue to stay at this pace year after year. Budge accordingly”
It’s great to have one of those brain doohickeys.
I think once you are elected to office, you are required to turn it in.
Cut spending now.
Tax the rich (mines and fishing).
And the poor (cigs and booze).
That’s fairness.
I have said that once they are elected, whether it be for Congress or a state position, they are handed a bottle of 'stupid pills' which they regularly take. The results are evident.
Actually, Bill Walker was endorsed by Sarah Palin.
Didn’t Walker pretty much win thanks to Palin’s endorsement?
The Republican candidate, Sullivan, won the Senate seat and Walker beat Parnell for Governor with Palin’s support.
I wonder if Palin is now regretting backing Walker and helping making him Governor?
You're asking a professional politician to say "no" to someone - as everyone knows - will cause him to instantly burst into flames.
Well, guess he’s not living up to expectations.
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