There’s a plan in the works that would help bridge the state’s $2.8 billion annual deficit in three years. Alaskans would help pay for it.
It comes from the House Finance Committee, and it includes a cap on the PFD, higher taxes on oil and gas producers and implements an income tax.
Alaska hasn’t had an income tax since 1979.
Representative Paul Seaton is co-sponsoring House Bill 115. It reduces the PFD to $1,250 a year, and it creates a bracket for income tax based on individual and married couple’s income.
“It fixes the problem." said Rep. Seaton. "After three years, the deficit goes away."
To put it simply, the more you make, the more you have to pay up.
No individual has to pay, if they make less than $10,300. But if more than that is made in a year, 2.5 percent of an income will be taxed, until $50,000 and so forth. The highest bracket for an individual, who makes $250,000, is 7 percent.
If passed, Alaska’s income tax would be the fourth lowest in the country.
I think this is long overdue.
We have been living in a fantasy world of oil money for way too long, and it is time to face reality.
Besides with that $1,250.00 PFD each year most people will still come out ahead.