House Finance Committee — Please Note Time Change — HB 284 – TAX COMPACT; SALES TAX; OIL & GAS TAX Invited Testimony Nils Andreassen, Executive Director, Alaska Municipal League Bills Previously Heard/Scheduled

🤔 One takeaway from yesterday's HFIN hearings on the #AKGov's proposed fiscal plan is that many #akleg members, including several Rs, view their role as protecting government economics rather than #AKfam economics. The two are not necessarily aligned.

We'll do the math because #HFIN won't. A $1000 PFD is an 83/17 split of the POMV draw b/w govt and #AKfams. It's a ~$7500 reduction in income to the average-sized #AKfam. Using a broad-based tax instead would take LESS from 80% of #AKfams. #akleg

... $5350 per average #AKfam (or 6% of avg #AKfam income, and significantly more for those in the middle & lower income brackets).

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Some seek to trivialize the impact of #akleg PFD cuts on #AKfams by referencing only the per PFD cut, i.e., it's 𝙤𝙣𝙡𝙮 $2000/PFD. But that significantly understates the actual impact per #AKfam. Using the avg household size of 2.67, the cut is ...

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Some #akleg: "#NoTaxes! Use PFDcuts instead."

𝙇𝙤𝙨𝙚𝙧𝙨? 80% of #AKfam from whom #PFDcuts take 𝙢𝙤𝙧𝙚 than taxes. https://bit.ly/3zoomJt

𝙒𝙞𝙣𝙣𝙚𝙧𝙨? The Top20% who pay less & non-rez who pay 𝙯𝙚𝙧𝙤.

So, 𝙬𝙝𝙤 do #NoTax'ers really rep?

Just #LookAtWhoBenefits...

More Anchorage residents are relying on food assistance programs Lengthening lines at local pantries show a growing number of people in Anchorage who are food insecure. At the same time, the quantity of food donations hasn’t kept pace with demand.

A reminder. Using PFDcuts to fund govt reduces middle/lower income #AKfam household income and 𝙞𝙣𝙘𝙧𝙚𝙖𝙨𝙚𝙨 Alaska poverty levels more than any other revenue option. #AKleg candidates may 𝙘𝙡𝙖𝙞𝙢 they are concerned about ... https://buff.ly/3Blfzh9

For most Alaskans, an income tax would hurt less than a PFD cut, report says A study says cutting Permanent Fund dividends would hit middle-income Alaskans more than three times harder than a progressive income tax.

Some #akleg: "#NoTaxes! Use PFDcuts instead."

𝙇𝙤𝙨𝙚𝙧𝙨? 80% of #AKfam from whom #PFDcuts take 𝙢𝙤𝙧𝙚 than taxes. https://bit.ly/3zoomJt

𝙒𝙞𝙣𝙣𝙚𝙧𝙨? The Top20% who pay less & non-rez who pay 𝙯𝙚𝙧𝙤.

So, 𝙬𝙝𝙤 do #NoTax'ers really rep?

Just #LookAtTheirDonors ...