Just a little tax: Rep. Galvin tries for ‘starter pack’ income tax

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Rep. Alyse Galvin of Anchorage District 14 is smart enough to know a big income tax will never fly, but she’s hoping that a modest income tax will reopen the door to taxation of Alaskans’ paychecks.

HB 156 is that starter tax to get things going and get the money flowing into state spending accounts. Anyone making over $200,000 a year would pay the state 2% of their income over the $200,000 threshold. Everyone else would pay $20 to the state. She says it will bring in $120-150 million a year in new revenue for state coffers.

The bill will be heard in House Way and Means Committee on Monday evening. It’s one of several bills in the House and Senate that would generate new money for the State of Alaska through income and corporation taxes, or even a statewide sales tax.

The last time Alaska had an income tax was in 1980. There have been many who tried, and all of them said that without an income tax, the State of Alaska would go broke. But even when oil was $9 a barrel, legislators did not bite on the taxation solution. Through the years, the budget has continued to grow, but not quite as fast as Democrats and their no-party allies would like. Alaska is the only state to have repealed an income tax once it was on the books.

Galvin has produced no fiscal note for the bill but past proposals saw the cost of state collection of such a revenue eating up at least half of the revenue.

According to the Tax Foundation, Alaska state revenues were close to $30 billion in FY 2021—about $117,000 per household. The median household income in Alaska is $80,287, according to the Census Bureau, and total personal income in the state was $49.2 billion in FY 2021. While some Alaskan incomes well exceed the median, Alaska’s state government revenues that year were 60.6 percent of state total personal income, the Tax Foundation says.

A starter tax like HB 156 would get a tax back on the books for Alaska and could then be adjusted upward in future years.

In 2017, former Gov. Bill Walker called for an income tax. Walker even called for a special session to consider his tax, but it was a nonstarter and he lost the 2018 election.

66 COMMENTS

  1. . . . . and suddenly, she was removed from office. Or so we can hope.

    Maybe the idea of the state coming after our personal money will wake people up?

  2. I think the best part about this income tax is that it can be automatically deducted from your PFD, whatever it is they decide your PFD is. So not only will they take 50% or 75%, or even 100% of your PFD, but you can automatically give them your income tax by way of your PFD…how thoughtful of them.

    • And that is a good thing? Seriously? While they make no effort at all to rein in state spending? Are you being facetious? ?. A resounding NO on that bill. Galvin needs to be voted out. Our state needs to be taken back by conservatives that can manage a budget.

  3. Just an itty-bitty starter income tax. Water it and feed it and watch it grow. Oops – gardening season is almost here. Haha!

  4. Typical leftist.
    Thinks everyone else’s money should be theirs to spend on what they want to spend it on.
    .
    Last time I checked, there was a name for taking the fruits of someone’s labors and spending it on your own personal wants. I think that was called slavery.

    • And, leftist = theftist for productive citizens in the State of Alaska. Get your “house” in order before you “appropriate” any more taxes that target the productive.

    • This lady, Galvin, is not the problem. Rather she is merely a symptom of leftist, Marxist, voters. The generational brainwashing by our co-opted education system is bearing its reprehensible fruit. Your problem is your leftist neighbor living across the street. Remember that when you say hello in the morning.

  5. Amazing how the mentally infirm are elected to office. My son received a Robo Text from her campaign during her run against Don Young. He replied that he was concerned that Alyse wouldn’t be able to field a firm hand shake from her constituents and, should he be concerned about that before he voted. No reply. Could she be Zack Fields’ next leg wrestling partner?

    • Yes, she’s obviously a broken person who’s trying to find find purpose in life through liberal politics.

  6. Now you have to have to hire a whole new crew… to handle the administration…
    More government jobs (sweet)

  7. Hell no because it is a window for increased taxation. We are already taxed by the theft of our PFD.once it’s in it will go up and expand because government never has enough money. This state already spends beyond its needs and millions are wasted every year. Galvin needs to pass a law that spends money responsibly and holds people responsible for waste. I bet that would save millions for government.

    No new taxes.

  8. Willow is supposed to eventually increase oil production by about 40%. Why not cut now and wait for the windfall? By the way – Galvin is a clueless bimbo that has never had a real job. She is way out of her league with this Bill.

    • “Willow is supposed to eventually increase oil production by about 40%. Why not cut now and wait for the windfall?………”
      Willow will be no windfall. It is on NPR-A, not state lands. It will not be the 90%-10%/state-fed royalty split. It’s the other way around. The windfalls are over, Josh. I’d suggest moving to Russia to enjoy oil/gas windfalls, but it looks like their bonanza is over, too.
      Ah, such is life in the eyes of gold rushers…………

    • The only thing keeping our budget in check is that the State cannot hire all the people they want. The agencies can’t spend on people when they don’t have the people to spend it on. Keep this going as a way to control out of control spending. Don’t support the new pension plan they are talking about.

  9. And the radical leftist camel sticks its nose into the tent …
    .
    (… again, and again, and again, and again, and ….)
    .
    One thing you can say about radical leftists, they NEVER give up on pursuing their agenda for the total control of society. They are political dry rot: always spreading, virtually impossible to get rid of, and completely destructive of whatever they infest.

    • Like termites? Keep eating away until the house disintegrates unless the infestation is eliminated?

  10. Somebody should point out to Mrs. Galvin that taking any amount from a statutory PFD is ALREADY a tax. The sneaky,”Oh we will take it out of the PFD so you won’t see it anyway” doesn’t wash either, as a completely new bureaucracy will collect income information on you, getting a better picture of whom to tax next. Lastly the $20 tax is just asinine, as it probably will cost as much to administer and collect as it makes.
    The question to Mrs. Galvin is simply, why not make it voluntary and encourage all your “yeah for income tax” buddies, to just send the state treasury the $20.

  11. It’s gonna happen. The left never stops scheming and working.

    Alaska has the government it deserves.

  12. Galvin is ignorant, and anti- Alaskan. We give away billions of dollars of oil, and minerals every year. We are not going to subsidize the theft of our resources with an income or sales tax.

    The very idea working Alaskans should subsidize the wealthiest corporations on the planet is absurd.

    Voters in her district need to show Galvin the door.

  13. Alaskans are bright enough to know that there will be no “morning after pill” for Galvin’s tax. The question is this: if adopted, what will be–not what might be–the political gestation period for a more “comprehensive tax?”

    There is no “political morning after pill” for Galvin’s tax: first you pay, then you must pay more!

  14. Would it be rude to suggest Peoples Representative Galvin be provided a “modest” airplane ticket to anywhere south and a “modest” kick in its nether regions to facilitate the boarding process?
    .
    Here’s another bit of legislation in a growing list which begs for nullification through non compliance.
    .
    What say you, Gentle Readers? When this one stiffs you with its tax, will you tell it to go to hell and not pay the tax?

    • Most of us will not have the ability to prevent withholding – through either the PFD or payroll.

    • Good point Morrigan, in times past it was called a ” Blue Ticket”, that was the subtle suggestion that one was not welcome in an Alaskan Community. Growing up in Coastal Alaska during the Last Century one heard of incidences where an individual would be presented with a one way ticket.
      Another saying was ” He has missed too many Boats” referring to someone who had out stayed their welcome.

  15. Yet another example I look at and ask myself “How in the hell did we get stuck with this idiot?”

    Then I look at our latest election with a 14% voter turnout and it makes sense. Kinda…

    Special thanks to the other 86% of eligible voters who I’m sure are good, hard hitting conservatives but just couldn’t be bothered to vote. Meh.

    Consider that if you are in a room with 10 people, less than two of them voted. Of course, all ten will say they did while ranting about our situation.

  16. No paychecks after day 90. Unauthorized by the people activity after 90 days not allowed regardless of grandiosity. We mean it. You have 90 days to produce the sustainable budget. You failed. You are not authorized to be on premises. Shut and lock doors. The Alaskan people said 90 days. We meant it.

  17. I always thought a sales tax would be smarter than an income tax. That way everybody pays their fair share instead of people that are financially struggling paying nothing but still weighing on the system.

  18. Every session they try to ram through an income tax. They’ll get it eventually. Then anyone with the means to leave the state will do so.

  19. So sad most conservative Alaskans are too lazy or too stupid to contact their reps on these issues. Hell, only about five percent will even vote. How many of you bothered to get off your asses and protest high jacking of our grand juries? I was there in Palmer, it was heart breaking. But oh boy, if they ever try to take your guns! Then their really gonna get it! The fact is people, there are too many residents and not enough citizens. So just admit it folks, they won, we lost.

  20. The state of Alaska spends every nickel that comes into the state from the oil, corporate income taxes, and federal spending and the legislature is STILL completely unable to control itself and now wants our money we EARNED by working! This is why people my age are giving up and throwing in the towel. I can’t wait for the ensuing feces storm when enough of us call it a day and the infrastructure starts to shut down because nobody knows how to fix it.

  21. hmm, I imagine her bill wouldn’t touch all the out of state workers. You know, Slope, commercial fishers, loggers, miners. All of whom do their “2 n 2s” and fly back home.

  22. The FNSB borough is already charging me close to $400/month for my 1000 sq ft house on one acre, cant really afford the state jumping in on that band wagon.

  23. But but but wait everybody. You havent even given them the chance to prove what they can do with your money! If we give them more of our money They can provide for us all with the quality education our children deserve. Why dont you trust Forrest Elvy Loki and the painfully constipated Andrew Gray with the perfect plan they have for teaching your children about the all important subject of SEX? After all reading writing and math are not near as important in their future as who or what they can become with the proper training and indoctrination. I can picture it clearly above the blackboard behind a locked classroom door because of a woke Soros hired DA … “Run Children Run from your parents now. Be all you can be!” Or was that Run Forrest Run???

  24. Taxation without representation. A tax, once instituted, is virtually impossible to get rid of and will pretty much always go up, and up and up. And what do we get in return? Cost of living in AK is pretty high as it is now, and we have crappy infrastructure, crappy schools, crappy government, etc. etc. Here is a novel idea, spend within your means and stop asking the already tightly squeezed populace for more of their hard earned money.

  25. Yea Alyse, sounds good… let me get into an Alaskan pocketbook, and leave the non-Alaskans alone. We live in a state where you don’t have to change residency to work here. Once in my pocketbook, you would dig a little deeper once the left gets in there. Others mentioned it would make more sense for sales tax, but no working people should fund the coffers. Not oil companies who get the greatest kickbacks since the State tier 1 employees.

  26. I remember years back when we all paid a $10.00 school tax, today $ 20.00does not seem unfair as long as I get a full PFD, but I know that will never happen. This all started with that crook Walker and his lack of morals Lt Gov.

  27. No new taxes, period. No PFD theft, period. Let’s GO Brandonette. GO AWAY! Back to the land of fruit and nuts! First they stole my PFD, then they stole my retirement – and now they have the chutzpah to demand what will be an exponentially expanding percentage of what I now have to work for to pay my way in my old age? Then they will offer MAID so I cost them nothing instead of the State funded nursing home I can no longer afford. A slave I will not be. Damned evil demonrats.

  28. Income tax (Galvin) introduced from the left and a sales tax (Carpenter) introduced by the right. Taxes are coming, it’s just a matter of time.

  29. This is how the lizards got the federal income tax going
    They won’t cut anything and they keep expanding government it’s no wonder progs have taken over anchorage there’s lots of money to be stolen so it lures up political wannabes who can’t make it in NYC and the Bay Area so we get their rejects like George Martinez Chris constant and the biggest thief of them all Austin quinn

  30. I moved to Alaska from the midwest as a 20 year old, living in an old ford van. At that time, there was a state income tax, a school tax, and no permanent fund dividend. Alaska truly was “the great land”. Alaskans were always willing to lend a helping hand and contribute. Sadly, today it seems an “Alaskan” is someone who not only does not want to contribute,they are someone who feels they should be rewarded for living here. Sad. I much prefer the pre dividend Alaska.

    • Gunner, I too miss those times, the pre oil years, because the quality of elected leaders was far better than what we have today. Those men and woman in the pre- oil days provided essential services much better with far less.

      As for the P-Fund, it is a tool to limit the size, scope and power of Government. Imagine if it wasn’t created, the Fools in charge now would have spent all of the Oil $ and still be hounding you for more.

    • Take me with you Gunner. ALASKA: Big mountains, big animals, and big Communism sold by “conservatives.”

  31. The only difference between Dems and Republicans is Dems try and steal your money on Tax day while Republicans try and steal it at Church and by selling non existent voter fraud. Of course when Jesus was doing his Sermon on the Mound we all know he was thinking about making that new Kings Chapel in Wasilla.

    • Funny Rino. I would like to point out that Tax Day isn’t voluntary but compulsory. By the power of government a toll is extracted from all of those, who actually produce.
      Tithes and offerings are entirely voluntary. Is the local church knocking on your door every month to collect a tenth of what you make, with the local constabulary to back them up? I bet not.
      If your labor under the illusion that there is no voter fraud I think you are very naive.

      • Well you need to prove in a court of law there was voter fraud, most of the cases that are proven is some Trump supporting loser who voted for his dead Mom. And if you think voter fraud changes the outcome of an election in this country, you’re not naive, you are delusional.

  32. RINO, have you sought professional help in finding a solution for your unfocused and irrational anger?

    I mean to say that who cares what King’s Chapel does. Those who attend and support that Church do so freely.

    Why does that bother you RINO? ?

    • Oh I don’t care if you give your hard earned money to a con like the Kings Chapel. That’s your choice, don’t worry the rest of us will pick up that 10% tithe you gave away when you retire broke.

      • RINO, very presumptuous of you to think that I attend Kings Chapel.

        As for lost savings I think that you would be better served if you were a bit more curious as to what your Government has done to the value of your savings. This thing called inflation didn’t come from someone attending Kings Chapel.

        • Inflation sucks, but if you got outside your Faux News echo chamber you would realize it’s a worldwide problem.

  33. PS, a lot of our inflation problems come from the last moron in office running up our debt $8 trillion and bullying the Fed into keeping rates low to make his weak little ego look good. But hey we all know your cult leader can do no wrong. Also Biden dump his unnecessary trillions in too to be the big man.

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