By MICHAEL TAVOLIERO
Have you ever wondered what Alaska gets for the total tax contribution its citizens give the federal government?
Alaska, a Russian-owned 665,384-square-mile piece of property, was $7.2 million sale to the United States in 1867. It remained a territory until 1959 when it was admitted to the Union as a state.
Its original admission was due to a combination of geopolitical, economic and strategic factors. This played out as a mixture of geographic military strategies and natural resource development potentials which offered its residents greater control over their affairs and resources. Alaska residents sought full representation and self-governance through statehood.
With statehood, the proliferation of military strategy development helped build and benefit several communities in Alaska, however, the long-sought dream of Alaskan natural resource development appears to have been bogged down by bureaucratic intransigency and lethargy.
In 2021, Alaskans filed income tax 349,810 returns based on an adjusted gross income of $29,233,555,000 with 641,450 individuals filing. This produced a total income tax liability of $4,216,090,000 or 14.4% of all reported income.
Today, Alaska has a population of some 710,000, yet we are the most federally dependent state in the nation with over 57% of Alaska’s revenue coming from the federal government.
Alaska gets a great return on the taxes its residents pay to the federal government. For every $1 that we as residents pay to federal taxes the state of Alaska receives $2.47 in federal funding or $10,389,233,000 (2021).
Alaska also receives a lot of federal jobs. Almost 5% of the state’s workforce is employed by the federal government compared to other states whose share is between 1% to 3%.
But what do we really get from that dependency?
The federal government through its funding controls the vertical and the horizontal of virtually every governmental function in Alaska. This includes and may not be limited to education, public welfare, hospitals, health, highways, police protection, corrections, natural resources, parks and recreation, governmental administration, utilities, liquor stores, and insurance trusts. With the majority of control, Alaska’s sovereignty as a state is actually a colonial dependency.
Simply put, if Alaska wants this money, Alaska must dance to whatever the piper is playing.
Think of this on a personal note, if you receive more than 57% of your income from the government, it typically means that you are heavily dependent on government assistance or support. This level of dependency on government income has various implications for an individual’s financial stability, self-sufficiency, and overall socioeconomic status.
Being highly dependent on government income affects an individual’s sense of financial independence and autonomy. It limits our ability to pursue opportunities for personal and professional growth outside of government assistance programs. Additionally, such a high level of dependency leads to concerns about long-term sustainability and reliance on taxpayer-funded resources. It also impacts one’s motivation to seek alternative sources of income or engage in productive activities outside of government support.
This high level of dependency on government income has broader societal implications. It strains government resources and budgets, leading to increased fiscal pressure on taxpayers in the form of additional varieties of taxes and potential cuts to essential services.
Moreover, a significant portion of the population relying heavily on government support hinders economic growth and innovation within a society. It contributes to social inequality and disparities, as individuals who are less dependent on government assistance have greater opportunities for economic advancement. Therefore, reducing dependency on government income is essential for fostering individual self-sufficiency and promoting economic prosperity.
It limits one’s ability to pursue personal goals and aspirations independently, as decisions and opportunities become more constrained by government assistance programs. This reliance creates a sense of dependency and diminishes feelings of self-worth and accomplishment. With that the creation of generational entitlements as currently happening in many lower 48 communities manifest to almost irreconcilability.
Financially, being highly dependent on government income leads to vulnerability during times of economic uncertainty or policy changes. Government support programs subject to budget cuts or policy reforms, which result in reduced benefits or eligibility criteria, affecting one’s financial stability.
Moreover, a high level of dependency on government income influences personal attitudes and behaviors towards work, education, and financial planning. It discourages individuals from seeking employment or pursuing higher education opportunities that lead to greater economic self-sufficiency in the long term.
Socially, relying heavily on government assistance impacts relationships and perceptions within communities. It leads to stigmatization or judgment from others, affecting social interactions and self-esteem. Additionally, individuals feel disconnected from broader societal norms and values associated with personal responsibility and contribution to society.
Overall, the personal implications of dependency on government income underscore the importance of fostering individual agency, financial independence, and resilience to navigate life’s challenges more effectively.
Have you ever wondered what Alaska gets for the total tax contribution its citizens give the federal government?
Michael Tavoliero is a senior contributor at Must Read Alaska.
