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Senate will take Action on House Income Tax Proposal Friday


JUNEAU – The Alaska Senate plans to vote Friday on a proposal to implement a state income tax.

The income tax is a priority of the House of Representatives and is supported by Gov. Bill Walker. The Senate Majority, in contrast, has stood firmly in opposition to taxing working Alaskans to build up the state’s reserves.

“Legislators are charged with making decisions that require political courage – it’s part of the job,” said Senate President Pete Kelly, R-Fairbanks. “The Senate has delivered a solution that does not require taxing working Alaskans, and we stand by that proposal. We’ll stand up Friday and be counted.”

Sen. Mia Costello, R-Anchorage, vetted the House income tax proposal in the Senate Labor and Commerce Committee, where the consequences of taking more money out of the economy to fuel more government growth, during a recession, were made clear.

“An income tax has profound consequences for working Alaskans and the small businesses that employ them – especially in a recession,” Sen. Costello said. “Only a floor vote will provide the clarity and certainty working Alaskans deserve.”

The Senate Majority’s plan solves Alaska’s fiscal problem – without taxing working Alaskans – through responsible reductions, a spending cap and strategic use of the state’s reserves.

“Today’s procedural action affirms this Majority’s unity and our shared priorities for this session,” said Senate Majority Leader Peter Micciche, R-Soldotna. “The Majority is committed to a fiscal solution that works without taxing the earnings of working Alaskans.”

For more information, contact Senate Majority Press Secretary Daniel McDonald at (907) 465-4066.


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