The first week of Budget Basics, we talked about the context of the budget discussion. Due to a significant drop in oil revenue, we have a $2.7 billion dollar deficit. Next, we discussed the importance of generating sustainable revenue to support essential services, like public safety and education. I shared with you last week that the house passed a fully funded, responsible operating budget.
This week, we're talking about the income tax. A combination Permanent Fund restructure and income tax bill is being heard Wednesday, March 29, 2017.
At the recent Anchorage Caucus, we asked in what way people would like to see revenues increase in the state. The income tax was the most popular option by far.
Data from votes cast at Anchorage Caucus February 25, 2017 at the Anchorage LIO
An income tax is a progressive way for everyone to pitching in to ensure we can provide all of the necessary public services to make Alaska a great place to live, work, and raise a family. It would be particularly good for our district in East Anchorage because we will pay lower taxes if we have lower incomes. Alaska is one big family, and an income tax allows us to each chip in according to our means just like we do in our families. Remember when you were young and your parents always bought your dinner when you went out? Later on you would buy your own dinner. When our parents retire and are on a fixed income, we often buy dinner for them. An income tax is a lot like that.
Originally, the income tax was tied to federal tax liability. Due to potential changes in federal tax structure, the bill has since been reworked. Below are the updated tax brackets. Updated tax brackets can also be found on page 7 of HB 115.
Public Testimony is being heard on the following bills:
HB 115- Income tax and Permanent Fund restructure Wed. March 29 1:30pm-4:30pm and 5:30pm-8:30pm
SB 72- Banning discrimination based on gender identity/expression Fri. March 31, 1:30pm
Click the pic to learn about more opportunities to testify!
Click the Pics! Learn About Community Councils
There is so much opportunity in your community to be involved and share your ideas. I want to hear them! Make sure to reach out to my office with your innovative ideas.