Taxes?

With the legislative session looming and with Democratic lawmakers in the state Legislature, along with Republican fellow travelers, pushing collaboration and cooperation on taxes, it is enough to make you want to hide your wallet.

The big enchilada, make no mistake, is an income tax. The House majority, Senate Democrats and a stray Republican senator or two, are simply dying for an income tax to reach directly into your paycheck.

The House Democrat-led coalition a few years ago offered one, but it went nowhere. It is not about to give up, and if its members can reduce the size of your Permanent Fund dividend along the way, well, that is just gravy.

There is talk of a state sales tax, an education head tax and an increase in the motor fuel tax, but the brass ring is, and always has been, an income tax that can be raised whenever the state needs to shake you down for more to spend.

Taxes are what happens when lawmakers refuse to cut spending and this bunch has shown spending cuts of any size are anathema. Taxes are just easier.

Alaska is one of seven states without an income tax, and joins Delaware, Montana, New Hampshire, and Oregon in being one of five without a sales tax. Those on the Left through the years have said repealing the Alaska income tax in 1980 was a huge legislative mistake. They have wanted it back ever since.

Imposed in 1949, 10 years before statehood, the income tax did what income taxes do – it grew. The levy started at 10 percent of a taxpayer’s federal income tax liability. By 1975, it was changed to a progressive tax, with a top rate of 14.5 percent.

The thing about taxes – income, sales, whatever – is they rarely go away, always increase and proliferate like rabbits.

One need only look to places such as Illinois, California or Connecticut for the effects of such growth. Loss of jobs. Economies on the brink. Government in debt.

Taxes, especially income and sales taxes, only allow lawmakers to dodge hard choices. As long as taxpayers have money, they have no problem allowing government to grow – and you can bet it will.

3 Responses to Taxes?

  1. R-Dubya January 12, 2020 at 10:33 am

    Regardless of the specific tax, you might also take into consideration ‘exactly’ who and/or what entities taxes are applicable. AND, you might be astonished to find out who’s ‘EXEMPT’ from taxes. I wonder why this isn’t discussed?

    Reply
  2. Randy S. Griffin Fairbanks Alaska January 12, 2020 at 1:14 pm

    I work hard at my job, and I don’t want to lose any of my hard-earned money to a state income tax, unless it is absolutely necessary.

    The state government is spending too much. They spent $900 for the 2019 PFD checks. That’s OK, because it was surplus money. But the state also spent an extra $706 to bloat up each 2019 PFD check up to $1606. Is that OK? That $706 caused a big deficit, as well as a cry for a state income tax, to grab some of my wages.

    It’s OK to spend $706 for public assistance for people who are hurting and really need it. But legislators should not send out free public assistance cash to every single person, just to try and buy votes for the next election.

    I think many citizens (including myself) are sick and tired of this deficit spending. We want a balanced budget. A $900 PFD in 2019 would have given us a balanced budget. We need to search for other areas to trim, then maybe we can get a PFD that is even bigger than $900 – as long as it fits within a balanced budget.

    Balanced budget, balanced budget. I’m hoping that the several vote grubbing legislators that we have oozing and schmoozing their way around, can come to understand that we want a responsible balanced budget, without draining every drop of our CBR savings account.

    My ultimatum to the legislators, is that I will continue to refuse to accept the PFD checks, unless you come up with an honest balanced budget. Don’t you dare think you can bribe me with free money, while driving Alaska into financial ruin. I’m sure there are many other Alaskans who feel the same way.

    Reply
  3. Russell Green January 14, 2020 at 11:15 am

    Randy Griffith……….SMH. Thats not how ANY of this works.

    Reply

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