Click Bishop on Tax Reform

OpEd: Proposed education head tax that would be regressive

[The tax based on] S.B. 12 would increase based on how much an individual earns. Even though the tax graduates based on income, the measure is actually regressive: someone who earns just under $20,000 would pay state government 0.2% of their income compared to someone who earns $1 million a year, who would pay 0.05% of their income.

Another feature of Bishop's bill is that most Alaskans would not pay the tax directly but rather would see the amount they owe deducted from their paycheck once a year,something that would cut down on the number of state workers needed to manage the system versus an income tax. Bishop said the bill as written would generate about $51 million. The Revenue Commissioner put the expected revenue closer to $70 million.