Frontiersman editorial

May 29, 2007

The Mat-Su Borough Assembly last week began serious consideration of a borough sales tax. It is not an issue anyone should take lightly. Assembly members, no doubt, are aware of the controversial nature of any tax proposal. That a borough sales tax has been proposed - and rejected by voters - five times since 1991 amplifies the controversy.

But it should also amplify the possibility that an equitable plan might yet be hammered out.

No one should take their eyes off the ball as the debate over a sales tax unfolds. But knee-jerk critics of the plan need to take a deep breath and assess the economic realities confronting us all.

The free lunch days are gone, and they're not likely to return.

Federal money to Alaska is drying up.

Regardless of how desperately anyone wants to keep their heads in the sand about the matter, the fallout is undeniable: less federal money to the state means less state money to communities.

That leads to the most fundamental - and simple - reality of all: If we want something - better roads, better schools, law enforcement, emergency services - we're going to have to pay for it.

It is a bit of a philosophical contradiction that the residents of a state that prides itself on rugged individualism and limited government should feel such a sense of entitlement when it comes to these basic services.

By no means are we offering a blanket endorsement of a boroughwide sales tax. Clearly, details need to be worked out. Among them, a cap on the property-tax rate, so residents don't wind up doubly burdened, like their less fortunate neighbors in some of the Lower 48 states.

We are, however, offering a vigorous endorsement of open minds, rational thinking and an overriding sense of fairness and shared responsibility.

It is not fair that property owners should shoulder a disproportionate load when it comes to footing the bill for public services. And given the potential volatility of the real estate market, it is nothing short of economic Russian roulette to continue to base the borough budget on such a narrow scope of income.

We applaud assembly members for their courage in taking up this issue, and we encourage residents to be engaged and remain vigilant.

It is time that some measure of relief be granted to overburdened property-tax payers. At least as important, it is time for some desperately needed diversification in the borough's revenue stream.

The right sales tax plan could be just the ticket for future economic security and prosperity - for individuals and the borough.