National sales tax wrong for Alaska

Mead Treadwell recently endorsed the National Sales Tax at a debate in Homer. This national tax would have a major negative impact on Alaska and the Mat-Su. Treadwell’s support for it raises serious questions about his judgment.

Washington, D.C., groups are behind the National Sales Tax, and newspapers have examined what kind of impact it would have on middle class families. According to papers like the Wall Street Journal, the National Sales Tax would significantly increase taxes on the middle class.

The National Sales Tax impacts on Alaska would be very damaging. As proposed, it would be a 30 percent tax on top of the existing sales price of goods and services. The National Sales Tax would apply to just about everything: Food, gasoline, medical care, travel, energy costs, even interest payments on credit cards. It is hard to even imagine how much that would add in expenses for the average household.

Groceries already are too expensive in Alaska. Treadwell’s National Sales Tax would add 30 percent on top of prices that already are too high.

The National Sales Tax would make it significantly more expensive to get to work and to travel. Add 30 percent to the cost of gasoline and Alaskans living in rural areas will pay approximately $2 to $3 more per gallon, because the National Sales Tax would come on top of existing gas taxes. The National Sales Tax would affect airline tickets too, adding hundreds of dollars to most trips.

The tax also would raise the price of four-wheelers, boats, and snowmachines. If you’re buying an $11,000 snowmachine it would cost $3,300 more in taxes, and you’d have to pay a 30 percent tax on the cost of shipping the snowmachine from Anchorage.

The National Sales Tax would even apply to medical care, adding more than $50 to the price of doctor visits and $3,000 to hospital visits. In fact, according to Alaska Institute of Social and Economic Research data, a 30 percent tax on health care would increase Alaskans’ out-of-pocket health costs by $163 million annually. Of course, all these costs would be even higher in rural Alaska. As bad as the sales tax would be for cities like Juneau and Anchorage, it would be even worse for smaller communities.

If all these cost increases are making your head spin, just remember: It doesn’t have to be this way. Elections are all about choices. I know I’m not voting for anyone who would support a National Sales Tax. We’re smart enough here in Alaska to keep taxes low. Let’s keep it that way and make sure Mead Treadwell’s National Sales Tax never becomes a reality.

Treadwell’s viewpoints reflect the Republican Party’s continued misunderstanding of the issues facing Alaska voters.

Mike Wenstrup is the Chair of the Alaska Democratic Party.