Bill Walker on Tax Reform

	Bill Walker on Tax Reform

Proposes modest increase in income tax

I'm proposing a modest income tax linked to the federal income tax. It amounts to less than 1 percent of the gross income for the average Alaskan. We selected an income tax over a sales tax for a couple of reasons. We wanted out-of-state workers who commute back and forth to Alaska to contribute to the solution. We also were sensitive to local governments that already have a sales tax. We didn't want to stack a state sales tax on top of a local sales tax. Source: 2016 State of the State speech to Alaska legislature , Jan 21, 2016

Increase on alcohol and tobacco tax

We are also proposing an increase to the alcohol and tobacco tax. I think of these as user fees. Alaskans are free to make their own choices, but there are significant public health and safety costs related to alcohol and tobacco use. These hit our general fund hard, and these taxes help offset those costs. Source: 2016 State of the State speech to Alaska legislature , Jan 21, 2016

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