Randy Daly: Let’s get the facts straight on Rep. Carpenter’s fiscal plan for state solvency

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Rep. Ben Carpenter

By RANDY DALY

I am writing to address recent claims suggesting that candidate for Senate Ben Carpenter is in favor of a 2% state sales tax. This assertion is misleading and does not accurately reflect his position. Rep. Carpenter wants Alaska to have an operational fiscal plan. 

First, it is important to clarify that Carpenter introduced a bill proposing a 2% state sales tax as part of a broader fiscal reform package aimed at addressing our long-term financial challenges. This proposal is not an endorsement of the sales tax in isolation, but rather a component of a comprehensive strategy to balance state spending and revenue.

In his sponsor statement, Carpenter emphasized that the proposed sales tax is designed to be part of a structural reform package, modeled after South Dakota’s sales tax system. He highlighted the importance of a broad-based system that keeps rates low, simplifies compliance, and minimizes economic distortions.

This approach aims to maintain Alaska’s ranking as one of the lowest combined state and local sales tax rates in the nation.

Second, Ben has consistently stated that he does not support any sales tax without a broader conversation about other fiscal measures, including cuts to current spending levels. At a candidate forum in October, Ben explicitly stated that he would not consider statewide sales tax alone. He also stressed the need for a mix of solutions, including reducing state spending and finding new revenue sources.

Ben is not advocating for sales tax in isolation.

He seeks structural fiscal reform.

Third, it is also worth noting that Alaska has faced declining oil production revenue for decades, prompting several attempts to introduce a state sales tax. Ben’s proposal is part of an ongoing effort to address these fiscal challenges to ensure the state’s long-term financial stability. 

In summary, the claim that Ben Carpenter is in favor of a 2% state sales tax is a gross oversimplification of his position. His proposal is part of a broader fiscal reform package aimed at addressing Alaska’s future long-term financial challenges. Ben has consistently emphasized the need for a balanced approach that focuses on:

Reducing state spending and growing the private economy.

It is crucial for Alaskans to understand the context of his proposal to accurately understand his vision for Alaska.

Randy Daly is a Kenai resident, was in the United States Marine Corps Reserves, former member of the State Chamber of Commerce board and Kenai Chamber of Commerce board.

2 COMMENTS

  1. I have a problem with the above statement, quote: “This proposal is not an endorsement of the sales tax in isolation, but rather a component of a comprehensive strategy to balance state spending and revenue.”
    Is it just me or does this sound like word salad? Either he is or he isn’t for a 2% tax.
    I don’t know Ben Carpenter personally, maybe a straight up guy.
    But the statement: “Ben has consistently emphasized the need for a balanced approach that focuses on:
    Reducing state spending and growing the private economy.”, doesn’t jibe with increased taxation. Adding a 2% tax would in my opinion minimize the pressure on the legislature to in fact “Reduce state spending”.
    How about we reduce spending, grow the private economy and retire the increased taxation idea.

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