In the face of our current economic challenges, implementing a State Income Tax may seem like a viable option to generate revenue; however, history tells us a different story.

The taxation systems at both federal and state levels throughout the nation have consistently proven inadequate, often burdening the very citizens they aim to protect and support. Not including other deductions, the federal government income tax rate is now as high as 37%, and yet our federal government is over 38 trillion dollars in debt. Income taxes have not solved our federal financial shortfalls, and they will not solve our state budget shortfalls.

State income taxes can disproportionately affect those who can least afford it leading to further economic disparity rather than alleviating it. Young families often fall into this category. Moreover, such mechanisms can stifle entrepreneurship and innovation, which are vital for our economic health in Alaska.

Instead of following a flawed precedent we must advocate for a re-evaluation of how we manage public funds. It is time to seek alternative spending practices that encourage state funded organizations to make informed, thoughtful, long term decisions and to retain and invest saved funds from year to year without penalties. Since statehood, the people of Alaska have given the state over 180 billion dollars. If the government would have saved 10% of that money over the years, every department in the state would have over a billion dollars in savings right now! Let's give departments the ability to save without repercussions and watch their savings grow. 

We can give agencies a fixed budget based on known minimum funding that they can depend on from year to year. This will allow spending to be forward thinking, promote responsible and efficient spending that is not forced by ridged timelines or flawed spending directives. Additional funds will be added each year to augment fixed budgets and further incentivise responsible, sustainable spending. 

Reformes would give departments access to funds when needed for cost saving purchases, will allow programs to start on time and hirings to be made as needed without waiting to find out if funds will be received. City and state departments, agencies, and organizations could work together to improve services while reducing costs.

A simplified one page accounting report, aligned with the financial values and goals we hold dear as Alaskans, would be required from each organization. This layman's report would be provided to all Alaskans so they could see at a glance how their money was spent each year. This would provide direct accountability to the people. Of course a full statutory accounting would also be available.

Positioning our economy for sustainable growth involves looking beyond traditional methods and embracing the opportunity for reform. Let's ensure that hard-working Alaskans keep more of their income while promoting economic growth.

Continuing to run our state finances as we have in the past will continue to have the same results; huge amounts of waste, diminished services, poor performing schools, loss of money from the permanent fund, and continued use of the PFD to balance the state budget. The full PFD rightfully and legally belongs to the Alaskan people and taking it is not a long term solution to our budget problems. 

Eventually, if we continue down this old road, the permanent fund will be gone along with the PFD. We will have a double-digit state income tax added to our federal income tax and we will still not have the services, wages, and benefits we want and need. Our programs will continue to fail, and our children's education will be diminished. Young families will leave Alaska for better opportunities elsewhere. 

It's time to stop doing the same things over and over and expecting different results!  Let's do things differently and get better results! We have nothing to lose. We are poised for change. We know what we are currently doing is not working! Lets change. It can be done!