Our less than esteemed governor actually seems to have had a good idea. This week, he will convene the Conference of Alaskans to discuss if and how the Alaska Permanent Fund can be used to address Alaska's huge budget shortfall.
When I first heard about the "Group of 55" (there are 55 invitees to the conference - the same number as number of delegates to Alaska's Constitutional Convention), I figured it was a boondoggle of the highest order and would be filled with Murkowski stooges. Well, much to my surprise, it is a varied and august group.
Alaska's Permanent Fund is a giant sacred cow. The average Alaskan does not want State Government to "raid the fund". However, there are a zillion different reasons why folks don't want the fund raided:
- State government is already too big and bloated. Cut the fat before the raiding the fund! (I don't agree with that one).
- Don't do anything that will take away my dividend. (I don't agree with that one either).
- Our bozo legislators would be incapable of raiding the fund in a responsible manner. (That's my reason).
Alaska does not have a personal income tax, we receive a permanent fund dividend (this year it was ~$1000), and we have huge budget shortfall. Education, public safety, etc. are all being gutted because of no money. But, woe be to the politician that suggests an income tax. We seem to be a very irresponsible populace at this point - we want our cake, we want to eat it, and we don't want to pay for it.
However, former Governor, Jay Hammond (The Bush Rat) has come up with a truly elegant proposal. Amazing in its simplicity and it would work:
- A progressive state income tax would be instituted - wait - this is not political suicide.
- The tax would be capped at the annual dividend amount. No one individual would pay more than that year's dividend amount.
- The POMV method would be used to calculate the annual dividend.
- Because the tax is progressive, low income folks would get right around $1000 a year just like we all do now.
- Folks making above $75K a year would pay the full dividend amount in State Income Tax.
This is an amazing proposal - we keep the Permanent Fund safe, we all become responsible citizens, yet no one is unduly taxed. Brilliant.
I have to say that this whole "Group of 55" has Alaskans talking big time. It's actually pretty neat. It's been a long time since the entire state has actually actively participated in a civic discussion.
5:38:42 PM 
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