PUBLISHER’S NOTEBOOK: My way or the highway!

There is no compromise in sight so everyone may as well dig in their heels. Governor Walker submitted a compromise budget to the state legislative bodies only to immediately run into the road block known as the State House of Representatives. The Democratic-led House may have been the first to turn the Governor away but the Republican-led Senate will surely do the same if they haven’t already. After all, Walker’s compromise includes a state income tax.

Our Mat-Su Valley representatives have been united and vocal that they will not support a budget with a state income tax attached to it. They are representing the will of their constituents well on this issue. I have spoken to many of folks about the idea of an income tax and they just don’t want it. Some say they would support some sort of sales tax, preferably a seasonal one to capture tourist dollars. Some who have the means have threatened to pull up roots and leave the state.

Those who argue for an income tax will tell us that we can’t cut our way to prosperity. We still need to provide effective services and education as best as we can. Both sides of the argument are well represented on social media, and Alaska-based media outlets. If you wait two minutes, one side or the other will have an argument that their position will save Alaskan jobs and bring us back to our strong economy of yesteryear.

Whose prosperity are the pro income tax folks talking about?

If the state takes income from hard working citizens and cuts their PFD, how will our economy thrive? The economy cannot grow if we are reliant on the state to provide income to its citizens. Some would argue that the PFD is income the state is providing. It is not. Alaskans not having mineral rights is the trade-off to provide revenue for the state. The PFD is not a handout, a subsidy or an entitlement. It is payment for giving up said mineral rights.

The proposed state income tax would be placed upon the so called “those who can afford it,” so the poorest amongst us can afford to live. A redistribution of wealth, although not on a grand scale. Consider this, the income tax calculator that is provided on the Alaska Senate Majority’s website and has been used in related stories by Alaska media outlets calculates a single mother claiming two children whose income is $55,000 per year would be obligated to pay $723.75 to the state. How about a married couple with a combined income of $90,000 with two children? They would pay $1,210. Couple that with a cap on the PFD and the PFD of their children.

Those who support both an income tax and a PFD cap would be hurting those who work hard to live paycheck-to-paycheck trying to provide for their families as best they can, hurting their chances of saving money to buy their first home or the opportunity to pay for their children’s educational needs. This group in our socio-economic classes are often forgotten, and the impact on them is seldom considered. How does this affect the well-off or the poorest of the poor is usually the argument for either side. What about those who fall in between?

What about the small business owners who employ five to ten people? The hardware stores, bakeries, restaurants, repair shops? If we take expendable income out of the economy and stymie the recirculation of monies, we will soon see boarded-up store fronts. I can tell you that there would be many communities in the lower 48 that would be jealous of how many small businesses survive and thrive here in Alaska. There is an incredible amount of strip malls that are filled with businesses that provide basic and off-the-wall goods and services. Taking money out of the average citizen’s pocket will have an adverse effect on them.

It’s time to dial down on talk of pink slips because the budget isn’t passed.

Every story I’ve read about the pink slips handed out in the Anchorage School District comes with a disclaimer at the end. Most of these positions are expected to be filled or teachers rehired.

And as for the threatened state government shutdown — if that happens, then it happens.

The sky is not falling, and if it is, it might be time to consider Alaska’s system as broken and reconsider our leadership and our constitution.

Thank you for reading the Frontiersman