News from the Alaska State Legislature, the Office of Senator Kelly
For Immediate Release: May 12, 2017

Senate Defeats Income Tax

Kelly_stamp.jpgSenator Pete Kelly
  ~ Send Email
  ~ Web Site

JUNEAU – Today, the Alaska State Senate rejected a proposal to impose a state income tax on working Alaskans.

House Bill 115, a priority of the Alaska House Majority and Gov. Bill Walker, would have taken approximately $7 billion from the pockets of Alaskans over the next decade to inflate state reserves.

“Whatever agreement the Senate and the House come to this session, it will not include an income tax. Period,” said Senate President Pete Kelly, R-Fairbanks. “The Senate will not penalize Alaskans for having a job.”

The Senate Labor and Commerce Committee, chaired by Sen. Mia Costello, R-Anchorage, vetted the House income tax proposal. The negative consequences of taking income out of the economy during a recession were apparent. 

“We heard from the bill’s sponsor, the Walker administration and experts on income taxes, and took extensive public testimony from Alaskans,” Sen. Costello said. “People are seriously concerned about the prospect of an income tax during a recession, and today’s vote brought clarity to working Alaskan families and the businesses that employ them that an income tax is off the table."

The Senate Majority’s plan solves Alaska’s fiscal problem – without taxing working Alaskans – through responsible reductions, a spending cap and strategic use of the state’s reserves.

“The Senate passed a bill in mid-March that provides a solution to Alaska’s fiscal challenge by capping state spending and using earnings to help pay for government and the dividend, which protects the Permanent Fund for future generations,” said Senate Majority Leader Peter Micciche, R-Soldotna.  “We do not support an income tax because Alaska does not need an income tax. Our Senate plan has been proven to fund Alaska’s government while closing the fiscal gap for many, many years without a burdensome income tax on Alaska’s families. It will protect the wages of working Alaskans.” 

For more information, contact Senate Majority Press Secretary Daniel McDonald at (907) 465-4066.

icon-facebook.png Share Share this on Twitter Tweet

News & Videos more >

Senator Peter Micciche

Schools Gain New Tool to Fill Vacancies

Today Governor signed a bill allowing school districts to temporarily fill vacancies with qualified retired teachers.  Full Story >>

Senator Cathy Giessel

Senators Respond to Salmon Initiative Decision

Today the Alaska Supreme Court ruled that major portions of Ballot Measure #1 may appear on November’s general election ballot, despite striking down other un-constitutional...  Full Story >>

Senator David Wilson

New Alaska Law Improves Behavioral Healthcare, Saves Money

ANCHORAGE – Today, a bill to increase Alaskans’ access to affordable behavioral healthcare and save state dollars was signed into law.  Full Story >>

Senator Kevin Meyer

New Law Protects Alaska’s Real Estate Market

ANCHORAGE – Today, a bill ensuring that companies in the business of helping Alaskans appraise real estate can continue to operate was signed into law.  Full Story >>

Senator Peter Micciche

Bill Ensuring Clean Air in the Workplace Becomes Law

ANCHORAGE – A bill to protect Alaskans from the adverse health effects of secondhand smoke in the workplace was signed into law this week by Gov. Bill Walker....  Full Story >>

Senator Bert Stedman

Sen. Stedman Sends Criminal Referral for Leak of Confidential Audit

ANCHORAGE – Today, Sen. Bert Stedman (R-Sitka), chairman of the Legislative Budget & Audit Committee, sent the Department of Law a criminal referral for the unauthorized leak of a...  Full Story >>

Senator Bert Stedman

Sen. Stedman Accepts Appointment to National Petroleum Council

ANCHORAGE – Sen. Bert Stedman (R-Sitka) today announced he will serve on the National Petroleum Council (NPC) following his appointment to the board by the Secretary of the Department...  Full Story >>

Senator Peter Micciche

Bill to Reduce Regulatory Burden on Working Alaskans Becomes Law

ANCHORAGE – A bill to reduce the state’s regulatory burden on barbers, hairdressers, hair braiders and those with student loans was signed into law today by Gov. Bill Walker....  Full Story >>

Senator Pete Kelly

Senate Adjourns Sine Die

JUNEAU – The Alaska Senate today adjourned the second session of the 30th Alaska Legislature, sine die.  Full Story >>

Senator Pete Kelly

Legislature Restores Private Property Rights in Dalton Highway Corrido

JUNEAU – The Alaska Legislature today passed a bill to restore access rights to private homesteaded property owners in the James Dalton Highway corridor.  Full Story >>

Find your Senator full map