Our Alaska Legislature has convened. What are they going to do about the over $3 billion budget deficit? Will they impose more budget cuts, tap the Permanent fund investment earning account, increase taxes/lower credits on the oil companies or reinstate the income tax or raise other taxes on oil and other industries?
A frequent response I have received when making political phone calls or going door to door has been “As long as they don’t touch my PFD I don’t pay much attention to what they do in Juneau.” They were in for a shock last year when Governor Walker cut the PFD in half.
For the last 30-plus years, Alaskans have had a free ride. Oil taxes have paid for our government and we annually get a dividend from the earnings of the Permanent Fund. Re-instituting an income tax may not raise a lot of money, but it would create a strong bond between the people of Alaska and their government.
Many people agree that more cuts are needed. Our state budget has shrunk 13 percent in the last two years alone. Yes, there are areas where more cuts can be made without hurting public services. Yes, we should revisit taxes on the oil companies, as we have reached the point where we are paying them to extract our oil. A bonus of an income tax would be getting some money from the many out-of-state workers who earn their money here but spend it elsewhere.
The overriding reason for an income tax is to get Alaskans more invested in what our legislators in Juneau are doing. There has been substantial research in the fields of psychology and business showing that if people have to pay for something, even a modest amount, they are more invested in the outcome than if they get it for free. Employers have found that if they offer employees incentives for participating in health and exercise plans, it is less effective than if they are instead penalized for poor health habits such as smoking.
We need Alaskans to have “skin in the game.” Taxes are the price we pay in order to have a civilized society. Budget cuts have direct effects on services we receive, including such essential services as public safety and road plowing. Reinstating an income tax will be unpopular politically, mainly because many Alaskans are not involved in the political process and don’t understand that doing nothing is not a solution. But our legislators need to put the good of Alaska before their personal ambitions; that is what they were elected to do.
The people we elect need to hear from their constituents. People need to become informed about the budget and where their representatives stand on issues. Having to pay an income tax would create greater interest, motivation and action on the part of Alaskans. Our reserve accounts will be out of money this year. Our state is in crisis and we simply cannot afford to let those in Juneau act as they want. Nothing less than the future of Alaska is at stake.
• Jamelia Saied moved to Alaska in 1959 as a child. She is a mental health counselor and peer support specialist, writer and editor. She can be reached at asjs@mac.com.
