Taxation, efficiency can coesist

It looks as if Alaskans long tradition of not paying state taxes might be coming to an end.

Gov. Tony Knowles had the audacity Wednesday to tamper with two ideas we hold dear, the Alaska Permanent Fund and state income taxes.

He proposed taking $4 billion and shifting it to the constitutional budget reserve, and implementing an income tax on households making more than $60,000.

Soon, we may be like every other state in the union. Believe it or not, most states dont know they should pay their residents simply for living in their borders.

It was a nice free ride while it lasted, but many of us are realizing that if we want things such as good schools, decent roads and an adequate number of troopers and judges, were going to have to pay for them.

Big Daddy Oils pockets arent quite as deep as they once were.

Mind you, were not thrilled about paying income taxes, either. But getting out-of-state workers to pay their fair share would be a promising step.

Another idea Knowles didnt mention is establishing a statewide sales tax.

This could help raise money from the thousands of tourists who visit our state, particularly the cruise and tour passengers who dont spend money on gasoline and stay only a few nights in local lodges.

The key would be creating enough exemptions that locals can continue to afford groceries and other staples that rocket to sky-high prices in rural Alaska.

At the same time, we recognize that our legislators are concerned about the way our money is being spent, and we share that concern. As our tax burden increases, we want to be doubly attentive as to how that money is being spent.

Merely cutting the states bureaucracy will not be enough to pull the state out of its $1 billion morass. But perhaps instead of playing partisan politics, our governor and legislators can work together to provide an efficient and yet adequately funded state government.

This is a critical time, in which lawmakers will have to prove their mettle as leaders.

It is not the time for Alaskas politicians to cringe and grovel, with a calculating eye toward future elections. Instead it is time to consider taxation and efficiency, rather than continuing what has become a tiresome battle all in the name of Republican versus Democrat.

Frontiersman