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OPINION: Alaska's contentious tax history may be headed for another chapter

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OPINION: Alaska's contentious tax history may be headed for another chapter


Thank goodness this is an election year. Because of that, our betters camped out in Juneau — ever conscious of their new, fat, $84,000 paychecks, plus $307 per diem — are ducking any urge to whisper the words “income tax,” lest the irate hoi polloi show up with torches and pitchforks.

Oh, sure, there is a whisper here, a mutter there, and there are a couple of income tax bills apparently bogged down since last year in the bowels of the swamp, but nothing serious.

Mind you, lawmakers have more than enough to do: education funding; wrangling over energy proposals; firing up the economy; and, trying once again to sort out the whozits, whatzits and howzits of the Permanent Fund and its dividend.

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Besides, the bald fact is that an income tax is a lousy idea, just another way to divert your hard-earned dough to the government and bleed money from the public-sector economy. Such levies generally are forever and give legislators a green light to spend. We might as well hand them the keys to the bank. If our elected poohbahs were to stick Alaskans with an income tax this year, they would jack it up next year. They are, after all, a predictably untrustworthy lot.

Over the years, Alaska legislators have shown fiscal recklessness that is the stuff of legends. In a few years, beginning in 2013, our lawmakers siphoned off $16 billion of Alaska’s cash reserves to underwrite their profligate spending. Sixteen billion dollars! Who in their right mind would give these folks a clear shot at your paycheck or Permanent Fund dividend?

Alaska once had such a tax, adopted by Alaska’s Territorial Legislature in 1949. It was set at 10% of a taxpayer’s federal income tax liability — but unsurprisingly, it did what taxes inexorably do; it grew. By 1975, it was changed to a progressive levy, with a top rate of 14.5%.

By 1980, the state found itself hip-deep in North Slope oil cash, and libertarians, who were having their day in Alaska back then, got an income tax repeal on the 1980 ballot. Republicans and Democrats, loathe to allow the interlopers a victory, repealed the tax in September of that year to head off a vote at the polls in November. The taxes-are-forever Left has been crying about the repeal since.

There have been periodic attempts — some of them ugly — to breathe life back into Alaska’s income tax. Then-Gov. Bill Walker proposed a levy in 2015. In 2017, there was a bitter legislative effort spearheaded by a Democrat-led House coalition. The Left waggishly dubbed its proposed income tax the Education Funding Act. It was supposed to milk Alaskans of $600 million.

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Some of the state’s wealthiest, most powerful residents and businesses waded in. They threw a blizzard of cash and platoons of consultants into the fray to sway Alaskans and lawmakers to put the income tax back on the books and embrace smaller Permanent Fund dividends to protect their interests — and government contracts. Through it all, Democrats and their allies asserted ordinary Alaskans supported an income tax. A Dittman Research poll at the time for the Alaska Chamber belied that claim. It found 58% of the likely voting poll respondents opposed such a tax.

The effort fizzled in the Senate, and the state remained one of only a few free of such a levy. Not long after the 2017 fight, Gov. Mike Dunleavy took office and almost immediately offered three constitutional amendments: to ensconce the Permanent Fund dividend calculation in the state Constitution; a second to set a spending cap; and, a third to bar new taxes or tax rate increases passed by the Legislature without a vote of the people.

The tax provision would settle the question of whether, at a particular point in time, Alaskans want an income tax. There may come a day when one is necessary. Alaskans, who really cannot always count on their elected representatives to do what is best, should have a direct say in that decision.

It is not all that difficult to see why Dunleavy’s tax amendment has gone nowhere. Losing taxing power to ordinary citizens would take all the fun out of being a lawmaker. Further, legislators who approve their pay boost from $50,400 to $84,000 and increase pay by 20% for top executive branch officials when oil prices are ho-hum, the Permanent Fund Earnings Reserve Account is in trouble and the state’s savings have evaporated are not poster girls and boys for more taxes.

Oh, and the increases came, by the way, after the state salary-setting commission was rejiggered with diddly in the way of public notice. Lawmakers, indeed, may be more than wise this election year to let sleeping dogs lie. But wise, I’m sorry to report, is not always their forte.

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Paul Jenkins is a former Associated Press reporter, managing editor of the Anchorage Times, an editor of the Voice of the Times and former editor of the Anchorage Daily Planet.

The views expressed here are the writer’s and are not necessarily endorsed by the Anchorage Daily News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary(at)adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser. Read our full guidelines for letters and commentaries here.





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SEACAD seizes over 2,200 grams of meth in Southeast Alaska

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SEACAD seizes over 2,200 grams of meth in Southeast Alaska


JUNEAU, Alaska (KTUU) – Two men were arrested in separate drug investigations led by the Southeast Alaska Cities Against Drugs (SEACAD) task force in Southeast Alaska after authorities intercepted packages containing methamphetamine, according to the Juneau Police Department.

In one case, investigators in Ketchikan identified a suspicious package on Oct. 28, that was determined to contain around 2,056 grams – roughly 4.5 pounds – of methamphetamine. The package was delivered on Nov. 1 and picked up by 33-year-old Louisiana resident Adidas Nike Zion Brown, who took it to his residence on the 1000 block of Dunton Street, according to the Juneau Police Department.

After Brown opened the package, officers seized the drugs, which have an estimated street value of $315,960. Officers also seized a firearm at the scene. Brown was arrested and taken to the Ketchikan Correctional Center.

Brown is facing three counts of misconduct involving a controlled substance in the third degree, two counts of misconduct involving a controlled substance in the fourth degree and two counts of misconduct involving a weapon in the third degree.

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In a separate investigation, SEACAD identified two suspicious packages shipped to Haines between Oct. 27 and Nov. 4. The packages were found to contain about 235 – about half a pound – of methamphetamine combined.

On Nov. 5, the packages were delivered in Haines and picked up by 30-year-old resident Austin Elmer Benedict Hotch, who took it to a residence on the 200 block of 2nd Avenue, according to the Juneau Police Department. Investigators later seized the drugs, valued at about $50,000. Officers also seized roughly $24,000 in cash.

Hotch was arrested and taken to the Haines Borough Community Jail on a charge of misconduct involving a controlled substance in the third degree.

See a spelling or grammar error? Report it to web@ktuu.com

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Egan Center closes as shelter for Halong victims

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Egan Center closes as shelter for Halong victims


ANCHORAGE, Alaska (KTUU) – The Egan Civic and Convention Center in downtown Anchorage closed Tuesday night as a shelter for hundreds of Alaskans displaced by ex-Typhoon Halong last month.

The announcement came as over 300 people who were evacuated from Western Alaska communities were being moved from both the Egan Center and Alaska Airlines Center on the University of Alaska Anchorage campus into private, non-congregate shelters.

Shelter operations from the Egan moved to the Spenard Community Recreation Center at 2020 West 48th Avenue. That location will be open daily from 8 a.m. to 8 p.m., according to the Alaska Division of Homeland Security and Emergency Management.

The strong storm made landfall over Oct. 11-12 on Alaska’s western coast, leaving a path of destruction in dozens of villages in the Kuskokwim delta area. One person was confirmed dead and two others were still missing.

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The Spenard rec center shelter will be temporary, according to Bryan Fisher, director of the homeland security division.

“Closing the Egan Center doesn’t signal the end of our shelter support mission or diminish the urgent need to transition more people into non-congregate housing,” Fisher said in a prepared release.

While shelter operations ended at the Egan Center, the building will still be used as a United States Postal Service center for incoming mail for those displaced by Halong. That service will stop at the end of November, authorities said.

See a spelling or grammar error? Report it to web@ktuu.com

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Anchorage assistance center opens for Western Alaska storm evacuees

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Anchorage assistance center opens for Western Alaska storm evacuees


The Alaska National Guard transported 205 people displaced by Typhoon Halong from Bethel to Anchorage in a C-17 Globemaster III aircraft on October 16, 2025. It was the second of multiple flights to transport people who evacuated Kipnuk and other affected villages in the region. (Marc Lester / ADN)

A new center opened Monday to provide disaster recovery services to Western Alaska residents displaced by ex-Typhoon Halong who evacuated to the Anchorage area, state officials said.

Available services at the hub include help with state and federal disaster recovery aid applications, business and homeowner loan application support, social services, and tribal identification replacement, the State Emergency Operations Center said in a statement Monday. State officials said the effort is in cooperation with Calista Corp.

The Disaster Assistance Center, located in the Calista building at 1400 W. Benson Blvd, Suite 110, will be open weekdays from 10 a.m. to 5 p.m. through Nov. 14, according to emergency officials. Evacuees needing a ride to the center can contact Alaska 211 by dialing 211 or 1-800-478-2221, emailing alaska211@ak.org or visiting alaska211.org.

Similar services have been offered in Bethel, where some displaced by last month’s disastrous Yukon-Kuskokwim Delta storm have also sought shelter.

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State emergency officials in an update Sunday said that there have been 1,280 applications for state individual assistance and 491 applications for Federal Emergency Management Agency aid. The federal aid became available after President Donald Trump’s Oct. 22 federal disaster declaration.

The deadline for those seeking state aid is Dec. 9. It is Dec. 22 for anyone applying for federal assistance.





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