{"id":1610,"date":"2016-08-30T13:18:12","date_gmt":"2016-08-30T21:18:12","guid":{"rendered":"http:\/\/blog.huddlestontaxcpas.com\/?p=1610"},"modified":"2016-08-30T13:18:12","modified_gmt":"2016-08-30T21:18:12","slug":"alaskas-current-tax-debate","status":"publish","type":"post","link":"https:\/\/huddlestontaxcpas.com\/blog\/alaskas-current-tax-debate\/","title":{"rendered":"Alaska\u2019s Current Tax Debate"},"content":{"rendered":"
\"Alaska<\/a>
State of Alaska<\/figcaption><\/figure>\n

The decline in oil tax revenue has sparked an important debate among Alaskan policymakers. Historically, Alaska\u2019s oil supply has resulted in surpluses for its state government; now, with oil production on the decrease, state legislators are\u00a0seeking measures in order to confront the newly created deficit. At this point, the debate has narrowed down to\u00a0whether Alaska should adopt a state personal income tax or a sales tax. Alaska has been without a state personal income tax for 35 years and it has never collected sales taxes in its entire history.<\/p>\n

The Institute for Taxation and Economic Policy (ITEP) released a report<\/a> back in mid-July which addressed the issue of Alaska\u2019s revenue woes. The report \u2013 which was entitled \u201cIncome Tax Offers Alaska a Brighter Fiscal Future\u201d \u2013 makes the case that implementing personal income taxes for Alaskan residents is the better option. Essentially, the report propounds that adopting a personal income tax is more equitable, more sustainable in the long-term and also more financially beneficial to the bulk of Alaskans.<\/p>\n

Though the debate is alive and well, several actions have already been taken. Governor Bill Walker has already made cuts to state spending and substantially curtailed tax breaks available to the oil industry. What\u2019s more, Walker also reduced the maximum amount Alaskans may receive through the Permanent Fund; each person may now receive a maximum of $1,000 rather than the previous maximum of $2,072. The Permanent Fund is a statewide fund established to help ensure that a greater share of the Alaskan population benefits from the state\u2019s oil stock.<\/p>\n

Bringing balance to Alaska\u2019s fiscal quandary will be no easy matter. Whatever option is selected, there will be a sizeable bite taken out of Alaskan\u00a0pocketbooks. The hope is that the settling of Alaska\u2019s revenue problems won\u2019t disproportionately affect lower to middle level income families. So far, with all available evidence taken into consideration, it appears that reinstituting a personal income tax in conjunction with a few other measures is the surest means to provide both an equitable and sustainable financial future. Only time will tell if this is indeed the means which will be adopted.<\/p>\n

Image credit: davecito<\/a><\/p>\n

People searching for a lucrative career should consider petroleum engineering. Future petroleum engineers should view this presentation<\/a> which provides valuable tax insights for architects, engineers and construction professionals<\/p>\n