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

It would seem that sales tax is the most difficult to cheat on, which is good. The problems that it entails are what exemptions to allow and limiting the power of lesser government entities in tacking on their own %.

Besides being more difficult to cheat on, or create special loop-holes, it is the most transparent. If any agency wants more money for any purpose it is immediately apparent .

A sales tax will not affect tourism at all. Anyone that takes a cruise or comes up and spends 4 or 5 thousand dollars for a few days of fishing or 10's of thousands on a hunting trip are not going to abandon their plans because of a 7, 8 or 9% sales tax. Nobody that goes on vacation whether it be to California or Alaska base their travel plans on the local sales tax percentage. Alaska depends heavily on tourism and if the state is in the red the best solution for the states residents is to tax the tourists and transients. An income tax in a state where individual freedom and freedom from government intrusion reigns supreme is not a good option.

In the tax continuum ending the PFD should be first followed by a state sales tax. Only as a last resort should an income tax be considered.

You have that one nailed, for the most part, and Alaska is a prime example as you can't get there cheap or quickly, vacations are luxuries. You expect to spend.

Heck we have vehicles there and place to stay and its still a bit of change and time to get there.

You won't loose tourism bucks from a "normal" sales tax number.

How much of a sales tax are we talking about? When you start putting guided hunts and guided fishing trips into the equation, then you talking real numbers that could have an effect on whether or not a person books. Not to mention those people investing in their businesses now have to pay a state sales tax on top of a city sales tax on new equipment purchased? That starts to really add up.

We need to be pro growth, pro business, and pro jobs.

There ARE states with no income tax. Sales tax is easily avoided by buying on the net. Food ? Hunting, grow your own and buy from roadside farmer stands.

All taxes are evil and just another elite control method.

25,000 moose hunt, 6% is 1500 extra dollars. If I had 25000, 1500 would not bother me.

BUT IIRC high dollar things get lower taxes don't they?

FWIW we pay state and city sales tax here every day and have figured out how to make it work. Most places do.

Not at all happy about it, but I still say I'd much rather eveyrone pay, than some select few... like how much property tax I've paid to school districts and the wife and I have never had a single child and never will.... thats unfair.

Transparency is very important... but the fact many cities/boroughs have sales taxes already in place will make it harder to sell, I suspect.

Exactly. A consumption tax or VAT works exactly this way and has several benefits. People have some choice in how much tax they choose to pay by choosing how much they choose to consume. Luxury items can be taxed at a higher rate and thus only effect those that choose to buy them. (that's a lot of choice)

Finally, if goods have a high tax on them, people tend to shop more carefully for goods that last and are of higher quality, thus cheaply manufactured junk is no longer a "bargain" as you have to pay more tax again when you replace it. This also incentivizes caring for and repairing items rather than throwing them away. It encourages manufacturers to make better products and promotes better jobs in both the manufacturing and service (repair) industries.

Thanks.

That's a pretty big chunk of change.

I guess I am sour against taxing the tourists because I hear the same guys (in real life, not on the internet) bitching and moaning how everybody else should pick up the bill for their lifestyle. They bitch how the tourists are killing all the deer and catching all the fish. But, when the subject of taxes come up, they are all for taxing the crap out of the tourists so they don't have to pay a tax. Doesn't make any sense to me.

Sales tax is a tax on unnecessary consumption. If a guy can afford a $350 day long fishing trip plus the tip he can afford another 6 or 7% sales tax. That extra $20 doesn't even factor into the decision equation.

You have to look at it this way though.. If a guy is going to pay 2k to come up for 3 days of fishing, and is already hit with a 5% city tax, then it becomes an issue. A 5 or 6% increase will have an economic effect on the supply and demand, and will make Alaska less competitive against other destinations. If 5% wasn't a big deal, operations would have already raised prices 5%. And then you have the fish box taxes they are talking about, taxes on slip fees, taxes on fuel, taxes on flights, taxes on more flights, taxes on gear, taxes on shipping your crap up, taxes on maintenance, property taxes, self employment taxes, etc etc.. It all adds up and crushes those in business, who won't be able to raise rates to cover the extra sales taxes they have to pay, because their long time customers are already seeing a price increase.

You don't raise rates to pay taxes ! the taxes are added to the price charged by the business.

it is no different than the tax you pay on gasoline, alcohol or groceries

I don't have a dog in this particular hunt, but I do have some ideas on taxes. Way back in 1967 when I went to work for the Arkansas Highway Department the first time, sales tax was 3% State wide. Then a few years later Hot Springs and Little Rock added another 1% to Restaurants and Hotels. Things have kept adding to nearly every town of any size has some type of sales tax added in, one thing or another. Some places the sales tax is now 14% on some things mostly Restaurants and Motels with the State getting 6% of that. I live in an are where I can go to several different towns very easy, so I choose on big ticket items very carefully. I also buy a lot on the internet. Just this week I ordered 2 boat trailer tires and wheels on the internet, that will be delivered to my door in 5 days from ordering, with a total of over $30.00 cheaper than anywhere I can get them local. This includes Walmart and Academy Sports. This is true about tractor parts and auto parts in most cases. Watching things over the years, most of that extra tax money is thrown away on stupid things and has made none of the cities any better in my opinion. Arkansas also has a State income tax for everybody except those that live in Texarkana or Fort Smith. Since they are border cities, people there are exempt. miles

Ordering online can save some people money in state taxes, especially if they live in the lower 48, but if you have to pay shipping to Alaska ( and a lot of places will not even ship to Alaska) the savings is minimal at best.

a 5% city tax is HIGH to start with IMHO. Generally the state tax here is 7% appx and cities add up to 2 %.... FWIW

But again, all the things you mention of a customer, the ONLY thing he or she would be paying extra is X percent. If its another 5% on top of the city tax, its still only 5%. 25 bucks on 500 bucks if my quick math is right. Thats not even a tiny factor when I come to AK, simply because I have to figure out how to pay everything else you mention thats not all that cheap that ads up.

I hope that makes sense.

And its much better that EVERYONE that plays, pays... locals, tourists etc....

What was your option other than sales? I forget. To lazy to read backwards.

I think the petro fund should be looked at first, and the budget cut at the same time, but beyond that any tax other than sales is not a "fair' tax if thats even a good word to use about theft of my money.

I agree with you but the Troopers are cutting services as we type so how will they pay for the services. Pick any sector of the state economy that is paid for by the state and you will find it struggling to keep up.

Its easy to say reduce the size of government but we all like our services weather its clean water, the fire department or DOT patching the holes in our roads. The next 3-5 years are going to be tough in Alaska.

Tax of choice: Sales tax hits all of us evenly and the tourist will help out to boot. What will happen in places like Kotz which already have a hefty sales tax though?

State income tax....No thank you please.

Everyone gripes about a 6 or 7 % city sales tax but if our state gov't is to continue running at it's current rate the tax rate is going to have to be at least 15-20% and probably a lot more. And all of us are going to have to pay. Rich, poor, rural and urbanites.

I'm not in favor of any tax but if I had to choose it would be a sales tax.Leave my paycheck alone!! Hit everyone equally rich,poor, local or tourist. Make it on everything except food from the grocery store and clothing. Possibly a percentage cap per purchase.

How's about no taxes ...and just cut !!!! They are playing a shell game right now ...it will come back to haunt us ...the oil company's let go 100's ...the state ? 70 ...wtf