Rep. Alyse Galvin introduced a fiscal note to HB 159, a bill that would create an income tax for Alaskans. In it, the state Department of Revenue says it would need to increase Revenue tax agents and auditors by 70 people. Over the first two years, the cost would be $19 million, and the net revenues that would be collected would be $120 million after the first full year of implementation.
During her presentation to House Ways and Means Committee, Galvin made no attempt to conceal the fact that this is the starter-pack tax, which could be built onto in the future by the government. It’s a tax that gets an income tax back on the books for Alaska, to be increased at a later date by an insatiable government.
This was the bill’s first hearing. Like so many Alaska Democrats in decades before her, Galvin said that taxes were essential to saving Alaska’s state budget. Her presentation notes are here.
The Galvin tax would charge every working Alaskan $20. Those who make more than $200,000 a year would pay 2% on every additional $100 they make. Thus, oil company executives in Alaska would pay $2 for every additional dollar they earn. A person earning $1 million a year in income would pay about $16,000 to the State of Alaska as their head tax.
There is also a capital expenditure associated with the tax, as the Revenue Department says that the complexity of the proposal would require a contractor to build out an income tax module into the Tax Revenue Management System, which would cost about $9.5 million for initial implementation. Successful Alaska business owners might relocate out of the state to avoid the tax. Almost all government workers would only pay $20.
“After initial implementation, continued maintenance and support by FAST for the individual income tax module is estimated to be $2.25 million in CY2025 and $1.5 million in CY2026 and beyond. Continued maintenance and support by FAST for the FIVS module is estimated to be $500,000 in each year,” the fiscal note says.
As part of the Department of Revenue’s research into the potential costs to administer the head tax, officials spoke with tax administrators in the States of Montana and Vermont, which have population sized close to Alaska’s and which have individual income taxes.
Montana and Vermont employ approximately 102 and 60 people, respectively, to administer each state’s individual income taxes.
“Using a simple per‐capita adjustment, these numbers translate to 68 and 70 employees needed to administer an individual income tax in Alaska. Given the complexities that come with administering nonresident and pass‐through corporation returns, and the sheer volume of estimated new taxpayers and returns, combined with the fact that our staff would have little to no experience in state individual income tax administration to start off with, the Department expects to need 70 people to administer an individual income tax in Alaska. The new staff would be roughly split between the Juneau and Anchorage offices. The Department would continue to look for ways to automate administration of this tax and look for efficiencies,” the fiscal report states.
And who votes for this person? Not working people.
It’s the demo voting machine that puts out the needed votes to get them elected.
Very sadly and likely accurate.
Fact: More voted for her than for her opponent. Unless, of course, she cheated….. which is entirely possible in these current times.
Alyse Galvin never met a tax she didn’t like. She needs to be voted out.
Claman the same
So the Alaska Department of Revenue is to hand out between $1 billion and $3 billion in the PFD, and then pay a new division of about the same staffing size to claw back up to ten percent of that PFD, but get this, everyone receives the PFD regardless of initiative or effort but the tax is almost exclusively paid by those who choose to work. Yup, we want to impede work. As a further social policy we “hold harmless” the PFDs of those who choose not to work.
Also to be mentioned is that the IRS is the SINGLE LARGEST RECIPIENT OF THE ALASKA PFD yet the income tax would not be deductible by working Alaskans because almost all Alaska taxpayers cannot itemize their deductions.
The Alaska economy cannot handle further taxes on workers! We need to avoid taxing what we most need to increase. If we want to tax state and municipal workers, and workers at all the nonprofits that depend on state and municipal government, then it’s far better to merely reduce the remuneration of those workers. There is a reason that every worker at the Juneau Fred Meyer is trying to go to work for state government.
Kayak you do realize that a lot of fredmeyer workers also work for the state of AK. They have to work two jobs to make ends meet. States pay is not that great!
If the state would find a way to use its Natural Resources to prosper the economy that would work but it seems some legislators look for another way to find money from the Alaskan people to pay the state, it doesn’t take a genius to chose the best way.
Totally Agree! AK remains a resource development state. Economic growth and prosperity is directly proportional to continued – healthy resource development. It always has been and it will always be the case in the 49th State. AK has been blessed with abundant resources that are in high demand, AK has the know-how and expertise to develop these resources responsibly, and therefore we should all help support resource development of all kinds.
Tax schemes are not a viable resource!
Don’t you mean, “If only the United States Government would ALLOW Alaska to use and develop its natural resources…”?
Retirees would likely leave in droves so put that in your calculus…
How would this affect retirees? No paycheck, no payrolls tax.
The federal government and at least 12 states tax social security payments to one degree or another.
Good riddance.. by retirees
They’ll never have enough. This is just another way to get PFD monies out of WORKING people. I’ll say it again: Liberal leftists will never be satisfied until there is no more personal dividend, coupled with income and sales taxes.
That’s the agenda. Kill the PFD so the only other source is income tax.
Democrats loves them some income tax.
Wow $20. There goes my potted meat money for this month. I lose more than $20 a month.
Perhaps you should be more responsible.
The point was, $20 is chicken feed.
To you, perhaps.
To others, it’s a meal or transportation to work, or food for the baby.
People and governments don’t go broke $1 Billion at a time. They go broke $20 at a time.
2000 Pennies divided by 365 equals about 5 1/2 cents a day. Come on man!
The points are:
1) It’s a starting point only
2) Taxes are disincentives. Why disincentivize income
3) Income represents what you choose to do with your life. What right does anyone have to any portion of your labors?
4) Forced taking of your labor is called theft or slavery.
5) What portion of what one man earns is another’s “fair share”
6) Giving bureaucracies what they ask for is not a wise use of money.
7) I was taught to never use “only” or “just” when speaking of money as it belittles the efforts of a person to earn it.
Just $20…. That’s some time taken from another person’s life. They may not have very much left of it, and certainly don’t want to have it taken by anybody.
1. Chicken feed actually is higher.
2. Once an income tax is legislated, your lefties will continue to increase it, if only obviously.
Well you don’t want to give up your pfd. I would just about bet my hat that they’re not going to cut spending. How do you propose you pay the bills?
its just a start greg a foot in the door look at the history of the federal income tax to see where this will be headed besides who wants to give these thieving parasites 1 red cent
It’s not for them. It’s for the bills. How you going to pay the bills?
New employees what do you bet they will be UNION ???
The rest of us working people cut back when money is tight. The responsible don’t take out every credit card to max out and expect someone else to pay. If only working people had time to be legislators… but we are too busy working to support ourselves.
That’s not entirely accurate. Bankruptcies are up, credit card debt is up, there are plenty of other examples where people are not living amongst their means.
the politicians and their employees are the bills. the biggest expense is always labor the political class is always expanding the size and scope of government constantly and government workers get sweetheart deals like huge pensions and paid medical for life
cut cut cut. why is it when i cant afford my bills i have to either provide value for recorces or cut back on my spending while the political class on the other hand just goes and steals money from productive people, but I guess its your sweetheart deal that youre worried about so that explains why youve got no problem with the political class ripping alaskans off
Well I enjoyed my sweetheart do you while it lasted but I’m no longer in Alaska. I loved every payday looking on my printout of all the matching funds that went into my retirement account. It was like free money and I loved it and it built up rather quickly I might add.
Simple, with money I earn. I’m certainly not going to pay them with money I take from someone else. How do you pay your bills, Greg? I’m certain it’s with money you earned, from a benefit you provided to your fellow man. I’m betting you don’t just lay claim to somebody’s labors and call it your own.
I don’t have very many bills because I live in my RV on the cheap and rural Florida. Oh I need to go down and get propane every once in awhile and gasoline for my fishing boat. But mostly I’m retired because of money that I saved while working in Alaska. Working for the government does have its perks.
Cut the government. Why is this a challenge for you?
Cut what?
Road maintenance? Oil Tax Credits? Education Spending? Alaska Marine Highway? State Troopers? SNAP Benefits? PFDs? Legislative, Executive or Commissioners Salaries? Per Diem?
Please be specific. And just saying “20% off the top of every department” is not an answer.
pablo why is an equal cut not an answer? it would be the easiest most fair solution to the spending problem especially for leftist egalitarians. but here some outside the box thinking for you how much money would it save to have all these creatures of the political class work from their homes through zoom there wouldnt be any need for periderm and they would also have the opportunity to become productive members of society since they wouldnt be away from home all the time so they could get real jobs and stop stealing for a living as an added plus for their constitutes theyd actually be around instead of hiding in juneau inaccessible to about 85-90% of the states population. also there is no such thing as a marine highway either let the communities that utilize these subsidized boat rides pay for it privatize it or eliminate it altogether and before you ask yes toll roads are fine with me
AK4Liberation,
So you support a 20% cut to the State Troopers? You support a 20% cut to SNAP Benefits? 20% cut to the State Court System? 20% cut to Road Maintenance?
Because all 4 of those examples are already short handed and cannot do their jobs. The courts are backing up with more and more cases. The Troopers cannot police this entire state with the bodies they have now. SNAP Benefits are backed up and those deserving cannot get those payments and kids are hungry. Road Maintenance is bad around the state and look at the Seward Highway through Turnagain Pass, they cannot plow that road at night during the winter due to the shutting down of the maintenance shop.
I don’t disagree that the politicians should work from home/zoom in to meetings and that is a good suggestion. Thank you for that specific cut.
So you are ok with tool roads, isn’t that just a tax to drive? Who will pay for that infrastructure and the administration of the tolls collected? That is just more government bureaucracy that leaches funds from the rest of the state revenues
This makes as much sense as The Grifter Joe Biden hiring 87,000 armed IRS agents to go after whoever they choose to rattle their cage and make their life as miserable as they can all because they are registered republicans. Kinda reminds me of the “Brownshirts” from the past. History is more likely to repeat itself than not with Democrats in power which is not likely to change with all the illegal funding flowing into their campaign funds. Well maybe not illegal but unethical as Sam BankmanFried who is soon to be set free after donating millions of stolen money from investors to elect the Ruler Biden.
Typical politician! It makes no cents!
Learn how to balance a budget!
If you have to hire more State Workers to collect a Tax, then you don’t need a Tax. She has no common sense.
The purpose of government is to hire more Democrats. It is a perpetual motion machine.
It’s coming. Inside of a decade we’ll be back to 1970s tax levels.
Elect tax and spend socialism, get growing socialism.
And of course the 70 new state workers will be unionized.
Don’t support this at all and it continues to astound me how there is never any interest in reducing expenditures, just in finding more money to spend. Let’s all decide not just to bellyache on MRA but to call our representatives and oppose this bill.
That being said “Thus, oil company executives in Alaska would pay $2 for every additional dollar they earn” isn’t quite accurate. Although fixed in the next sentence, the relevant figure is $0.02 for every additional dollar they earn.
The left’s religion is government, the rights religion is, well religion. Both have thousands of years of history scamming people.
This is not a L or R issue—it’s a divide and conquer issue.
I agree, both sides want to divide and conquer.
true but one of those two options are voluntary and one is forced through the threat of violence
Did you expect anything else? Really?
“oil company executives in Alaska would pay $2 for every additional dollar they earn”
I think you mean they would be 2 pennies for every additional dollar they earn. Math is hard, isn’t it?
You’re right. I was up too late last night. Fixed, thanks. – sd
Even Alaska’s representatives and senators know:
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state spending will simply rise to absorb money which the galvintax confiscates from productive Alaskans;
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public-employee unions will “renegotiate” contracts to assure the galvintax never reduces members’ take-home pay;
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special-interest groups already made their expectations clear about constituents’ galvintax exemptions;
.
the terms “income tax” and “political suicide” are synonymous.
.
Might be time for a Galvin recall, no?
When is the last time a recall effort worked in full? The closest was Spicy Gato, and he cruised back into his seat in the special election.
Recall her, he district puts her right back in. She’s armed with the knowledge she’s now bulletproof.
It’s one of two things. Anchorage needs to do a damn sight better vetting their candidates, or (and this is it) she’s giving her constituents exactly the representation they want and deserve.
It’s funny to me a community with a 14% turnout in its last election cycle is acting surprised by the quality of people the 14% elected.
When you don’t vote, you play stupid games. And this is your stupid prize.
Spot on!
Prove to us that so few voted. Can’t do it. Those were the votes they counted. There’s no accountability. No, everyone in Anchorage is that stupid. We have a problem.
In other news…
I noticed her conspicuously displayed cross. What is her position on baby killin’?
She approves of killing unborn babies. – sd
Looked at her campaign site. Reads like proabortion without coming out and saying it.
A PFD and a tax makes no sense.
A tax won’t be approved until the budget becomes balanced and at that point it won’t be necessary
This woman just voted herself out of future elections.
Don’t be so sure – I unfortunately live in her district and I am most certainly in the minority politically.
This is the way all new taxation starts. Maybe there should be a tax on baby killing. And a tax on alphabet people who are sucking us dry. Heard her speech on the floor, how more government handouts would somehow help our workforce get back to work. It’s the government handouts that are destroying our workforce. Everyone is on welfare and food stamps and young people are handicapped by their drug addictions which are now called mental disabilities. And are being paid to stay addicted and not work. And every time someone calls this out they are bombarded by screaming clowns. Can’t even get through to support a bill that would give parents a right to know what is being taught in school. I don’t know what has happened to the voters other than a lot of them moving to the valley but our voting system is currently run by the assembly without checks and balances. Anyone doing business in Anchorage is a fool. In fact, Anchorage people should start driving to the valley to conduct business. Enough of this clown show. Demand an election recount, by hand, to verify the outcome. Make sure that all ballots are being counted instead of sorted and many canned before we assume a ridiculous low turnout with the stakes so high. I still have a hard time believing that so few voted. Especially when there’s over 35,000 subscribers to this forum alone. If it smells like it, it probably is. GOP be damned, they threw us away with the bath water. Our home values are fixing to drop tremendously, when people realize that the property values assessed by the municipality for tax purposes are not realistic and nobody desires to live in Anchorage, except people who do not desire employment and are living on handouts. Where’s that survey. So if you are happy about your tax assessment, and thinking about what a great investment you made, think again before you get that equity loan. People with real money who move here are trying to escape what we are fast becoming. They will buy elsewhere. The implosion will occur when there are no longer private sector people living in Anchorage. Already, most commute from the valley. Soon, we will need eight lanes to accommodate them. Better solution, abandon Anchorage altogether. Let them consume themselves, like pike in a lake that have consumed all the good fish. Just my opinion, don’t get hurt feelings. I apologize in advance.
Just to be clear here, before we grow government more we need to grow government more so we can tax working people so we can grow government more. If we then succeed in growing government more by taxing working people we can grow government more which will necessitate taxing working people more so we can grow government more.
Don’t forget the $ we have had stolen from the PFD I consider that a tax, I am adding Galvin to Giessel and Stedman , on do not support list.
Sounds like someone needs a seat on a first class bush flight.
A ride to the train station
No income tax. The legislature would just waste it, anyway.
Now we have the loser Dunleavy wanting a sales tax.
He wants working Alaskans and the poor to subsidize the theft of billions of dollars of our oil.
They’ve already taken over $20,000 per household- in lower dividends to subsidize SB-21, and all the corporate welfare within.
Now they want an income tax, and a sales tax.
Maybe this time enough Alaskans will get on board to recall Dunleavy.
There has never been a more disappointing failure in government than Dunleavy. He is a classic example of why the GOP is useless.
To be fair, sales taxes are far cheaper to collect and do not require disclosing your entire life to the government. Many states with sales taxes exempt items such as food and clothing in order to shift the burden off of the poor. Also, in a place like Alaska with a large tourism sector, part of the tax burden will be borne by tourists rather than locals.
I don’t like taxes any more than anyone else, but government does have some legitimate purposes and those purposes cost money. A potential side benefit is that maybe the public will get more interested in how Juneau is spending our money when they can see that it’s actually *their* tax dollars instead of just those evil oil companies’.
Looking forward to your piece examining how many state employee’s the Gov’s sales tax proposal would require to collect. If I remember right, it was about 50% more than an income tax the last time I read a fiscal note on a sales tax proposal.
Aren’t you tired of Alaska being a third world state dependent on the government for everything? You want roads to Nome. You want Bridges to nowhere. You want to actually enjoy Alaska without the expense of hiring a bush plane or signing a year-long contract to work in the bush. You want all that but you don’t want to have to pay for it. Socialist really hate paying up I’ve learned that much. They want everything given to them but they don’t want to pay for anything. Until Alaska gets its head out of the sand, they’re going to just remain a bunch of squabbling politicians fighting over chicken feed.
What about cutting government is a problem for you?
For someone carping about Socialism out of control growth of government for governments sake is classic Socialism.
It’s easy for you to carp about it only being $20 when it’s not your $20. That’s also classic Socialism to want to spend someone else’s money.
Been an interesting look behind your curtain, Oz.
A second fallacy in your diatribe is you claim a willingness not to pay for needed infrastructure. That’s wildly incorrect.
We’re happy to pay for things we really need. It’s all the crap we’re paying for now we don’t need which is the problem. Personally I’d support a gas pipeline if it did two things. Brought down our fuel costs and the money went back into infrastructure instead of the crap Alaska does fund.
Most of us would love to see more throughput from the pipeline IF it actually benefited us. Not the Socialist government of Alaska.
More, there is no effort to develop things in partnership with private industry. Or to privatize things like the railway or the marine highway.
Lastly where your screed falls apart completely is on this most basic level. We don’t control our land. With the boot heel do the Imperial Federal Government on our necks we can’t do a damn thing to develop our land.
Alaska is a third world state because the federal government keeps us that way.
who wants any of that? who are you speaking for? I for one don’t want any of that.
My guess is you haven’t read the funny papers in the last 15 or 20 years or even glanced at the headlines.
I like Alaska fine the way it is. If you want to live California, go!
Well said Greg
Sometimes you got to say enough, and do something beneficial at the booths. Too late for that though. Let to much of the riff raff get a claw hold.
They don’t dare approach business sector or oil companies for more taxes directly (being they’re corrupt), so they’re going after YOU instead!
I am a state worker, and taxes good.
All your tax money collected will pay and support my retirement plans.
Thats a win win for me!! and the rest of the Alaska State employees
I didn’t want to go there because I didn’t like rubbing salt in an open wound. But as a former Alaskan state employee I enjoyed watching matching money go into my pers account every month. It builds up pretty quickly.
Yup its does…thank you Alaskan tax payers
And that’s why the majority of us detest state employees..
Enjoy those paid holidays off.. you know those ones when the holiday is on a Saturday so you get the Monday off for some reason. Live a long time and go to the doctor when you sneeze. Spend the max amount of time out of state only come back in time so you don’t lose those state benefits when you retire. Everyone else will be working their asses off to cover your pension. This is why I detest state and city employees. And the fact you haven’t accomplished squat in life. Someone has held your hand every step.
Yeah pretty awesome. I would invite all the naysayers and sovereign citizens and tax dodgers and people hiding out in Alaska to get a clean bill of health and apply for a government job. All those sweet benefits could one day be yours too.
when everyone works for the goivernment who pay the bills then greg? government employees only take resorces out of the system they put nothing into it. this is just an ultra basic fact of economics
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