SPECTRUM: In defense of a state income tax

In answer to some responses to my letter regarding reinstatement of our state income tax, consider the old saying, “you don’t miss the water til the well runs dry”. Well, you also won’t miss state provided services until they are greatly reduced or totally disappear. Some are obvious. Already affected are troopers, teachers and schools, and highway maintenance which are the most visible, but there are others that are less visible but are no less important.

These are the services of which we are not aware or have taken for granted as automatic parts of our lives. I assume that we want decent public K-12, university and trade school education for our children and grandchildren, trooper services, safe winter roads, an adequate court system, among others. The other thing to consider is that state budget cuts are often salaries for the people who provide those services. When our mantra has been job creation, does it make sense to be cutting essential jobs already in existence? Those jobs create income, which in turn can provide income taxes which then in turn can help preserve those very state jobs.

Also, trying to replace these skilled and knowledgeable workers at a later date with new hires may not give us the expertise of those who have been laid off. Also, people who have left the state because of job losses will probable not return to a state that is financially unstable. We also really want our state to maintain an AAA bond rating with Standard and Poor, Moody, and Fitch by demonstrating an ability to deal with our financial situation plus be on solid financial ground. The beginning of our state recession can no longer be denied, though it will probably not be as extreme as what we experienced in the mid 1980’s.

Our previous state income tax was also computed as a percentage of our federal tax, and now can inject needed funds quickly into our state budget. Other taxes, (sales taxes, gas taxes, user fees, etc) can also be instituted also to even out the burden. The reduction of tax credits for mining, oil and gas exploration and development is already under discussion.

The Alaska income tax percentage of our federal tax could be adjusted according to the fortunes of our oil and gas leases, amount flowing through the pipe line, and pricing.

All I’m saying is that I will be happy to again contribute my fair share to keep the economy and state services of Alaska healthy. We indeed had a sweet ride since 1980, but it’s time to face economic reality, and stop the wishful thinking. I plan to live the rest of my life here and although I have only one child and his family remaining in the state, I want them to enjoy a stable financial environment in which they may live.

David P. Werner is a resident of Palmer.