Home Forums Hunting & Shooting Alaska Tax Thoughts on State Sales VS Income Taxes

For those pondering the need for more than one tax style you might consider the fact IRS only permits one or the other as a write-off against your IRS bill...

Setting up two different taxes with expensive infrastructures and very limited income results is asinine.

I would rather pay an income tax or a sales tax, rather than watch our state leaders chip away at the PFD. First it,s 10% then 5 years down the road they will need another 10 or 15% if not more. It makes me so angry, I am not sure I can put into words. The small company I work for, if and when we are flush with cash we might buy more equipment or increase the fleet ect. But if the cash is not flowing we cut back on spending (WOW) what a concept!
Perhaps a 10% tax based on vehicle value on all non commercial vehicles entering Alaska from March 1st to Sep, 30. Makes just as much sense as handing over the PFD to children with little or no self control.
Erich

I don't have a problem with using the Dividend, a significant portion anyway. That gives everyone some skin in the game without touching the principal. At the same time, though it hurts people with lesser incomes more, it appeases those who feel that some people .... those in unorganized boroughs where incomes tend to be less and more supports are needed.... are getting and unfair share.

Dropping a big tax penalty on tourists is not going to be a winning deal. On the other hand, anyone who has experienced paying the 12% 'room tax' on top of the $160 Motel 6 rooms (summer rates....which are double the winter rates! ) can understand that there are truly fair ways to rape your visitors.........do it to everyone! A sales tax does that. I would strongly encourage sunset provisions on any solutions that are used however. Alaska's economy is boom and bust; always has been.

It would not bother me much if tourism dropped too almost nothing as I get almost no at least direct income from terrorists. My 10% vehicle value tax idea was a joke.
It is funny that we as Alaskans can double room rates in the summer that"s directed at tourists. But tax them directly, no?
Erich

Make it a progressive tax on room rates, just make it 100% transparent... get everyone pissed off at everyone...

I imagine doubled room rates in summer help the MOA collect higher property taxes from 'hospitality establishments', and the 12% bed tax takes a tax burden off from half of the state's population. What's not to like? (Unless you live in Tok, Eek, Deering, or some other far-off place.)

Problem with taxes is the simple fact it will never be fair. Someone has to bend over...

I just hate the concept of having a chunk of change in one pocket and digging around in all the other pockets before hauling out the wad.

Reminds me of so many trying to get out of paying for their own lunch...

Sales Taxes are difficult and expensive to administer and then the debate over what items are exempt and for whom.

A state income tax based on a percentage of federal income tax really gives the tax avoiding communes a double advantage as they pay very little federal tax to start with.

The recent proposal to tax PFD dividends 35% is really hare-brained as I'd then pay the feds income tax on the full amount and then pay the state 35%.....WTF?.....why not just reduce the PFD upfront.

Our Legislators are just throwing ideas at the wall hoping one of em sticks.

This state needs to get spending under control but I see nothing on the Governor's agenda that appears to be a serious effort. Nothing!

Last year we heard that our local Forestry Office would be closed because of budget reductions. That's fine with most of us here as long as we have some fire fighting capability in summer. Not only is the office still open, but they just finished the remodeling project. Go figure!

IMHO, and I don't have a dog in the fight, but a sales tax on every last item is the most fair.

NO exemptions.

Although I'd be willing to strike it if you are over 65 forever then...

But beyond that if you can't afford it you don't buy it, clothes, food, RV, Boat, gun etc... Thats the way it was years ago... no one got any "exemptions". YOu etiher could afford it or not. And the truly needy were always taken care of by the community folks in one form or fashion, but when I give you bologna you don't ask for ribeye insted...

But personally even though its none of my business, Less spending is usually a good way to start. Lower the PDF from time to time, as needed to cover which ever years shortfalls... and then no one looses cash and it doesn't hit the economy so badly... except for state maintenance type issues..road repair and the like I'm sure would take a hit and that hits everyone eventually anyway...

Tough thing to sort out, but its time that ALL govt's started living paycheck to paycheck like the rest of the world with a budget that is LESS than they income, so you have something for a rainy day.

I say make a sales tax on everything. Cut PFDs. Reduce government.

The problem I fear we are going to get into is that we are going to give more power to the feds as we get deeper in the hole. Not good. I already see the feds stepping up LE on the water since the state has cut back. I'd much rather have the state watching me than the feds.

The advantage of a sales tax is that everyone pays regardless of residency. So out-of-state visitors, pay part of the bill. Colorado has a state sales tax and Colorado Springs has a sales tax and a Bed & Breakfast tax. The idea is for tourists who use our infrastructure when they visit, pay for part of that infrastructure.

It works here, might work in AK.

KC

The only issue with sales tax for out of staters, is that IF it gets too high it will cut back on tourism.

We used to visit folks in BC that were relatives... when the exchange rate was favorable, we'd go. When it got bad, we quit going for some time due to extra costs.

Would have to be a pretty high sales tax to get that far, but in many ways its fair, you are using the infrastrucutre, roads, first responders, water/sewer etc... etc...

I don't have hard data to back it up but my best guesstimate is that those that don't pay federal income tax use a higher proportion of local & state gov resources

I.e. Police & ambulance etc.


I don't say it lightly as I resent being an unpaid bookkeeper & tax collector for the fed gov't these many years

Not in a hurry to become one for the state & borough in addition

But non tax paying citizens & tourists pay very little for the services provided to them

My idea of the fairest way to have them contribute is sales tax

As Calvin said. Tax everything though food stamps will exempt low income from paying taxes on groceries

But at least their new cell phones, tennis shoes & fake nails will be taxed

I don't think we get enough tourists to make even a small dent in what we need to do with the budget. Tourism is a pretty good industry we have here, and killing it will but another nail in the coffin. Pretty soon it will be damn near impossible to live here unless you work for the government or some other tax payer funded position. That's not healthy when all of your biggest employers are all state or federally funded either directly or indirectly. But, they are trying their best to kill off all private industry it seems.

That's true, but given the spending habits of most folks on public assistance, they'll still pay plenty of taxes on the $15 worth of junk food and energy drinks they buy from the corner store every day. I've never seen anything like it.

And don't forget their cigs and alcohol...

It really is amazing to witness


I see folks on public assistance way more often than I'd like to, the way they live vs. how I lived when I was poor is stunning


Course now that I'm considered rich ( by some folks metrics) I still don't have use or need for many of the goods & services that some of those folks see as essential

I look at most of them & think if you gave them a million dollars they'd be broke in 5 years

Too much faith, way too much! Half that time would be all it takes. i will even bet you a hundred bucks if you go find a bum and give them a million bucks it will be gone in less than three.

Your million of course!

While I am in agreement with most of the things you've been saying on this thread, I don't think 'tourism' would be hurt much, if at all, by added sales taxes. I don't think 'low prices' have anything to do with why people visit Alaska. In fact, it would seem our prices are quite a deterrent as they are and yet, people still come.

And something you didn't allude to, but seems to be common when talking about tourism in Alaska, is the thinking of tourism in terms of 'downstater Americans'. This is erroneous in itself since a significant number of tourists seem to speak 'Asian' or other 'non-American' languages. Add to that the fact that the volume of 'hospitality services' utilized by businesses seems to be quite lucrative based on room vacancies, or lack of it, so much of the time. I don't see any greater harm in tapping that than in other methods of extortion.

All of that said, I am thinking more and more that perhaps we are trying to maintain a standard of living which we can't afford. And yet, more and more, new developments or code requirements force us to comply with a 'higher' standard of living than what some of us want. ('Twas looking at a new section of woods on the outskirts of Fairbanks recently; seemed like a decent, not too-crowded area, and then we saw the 'covenanting' arrangements they had....how many vehicles, what type of siding - or not, speed of construction, etc....okay, bank financing, union plumbers and electricians, etc...got it! No thanks; you can keep your uppityness. )

Income tax...at the end of the year u staple your pfd1099 to it...and ya get it all back ! We have duck and fish stamps...how's about a lobbyist stamp @10000$ a year!