Alaska
Alaska: Who Pays? 7th Edition
January 9, 2024 • By ITEP Staff
Alaska Download PDF All figures and charts show 2024 tax law in Alaska, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly all (99.5 percent) state and local tax revenue collected in Alaska. State and local tax shares of family income Top 20% Income Group […]
ITEP’s Andrew Boardman: The State of Local Taxes in Alaska
October 1, 2023 • By Andrew Boardman
In late September, ITEP Local Policy Analyst Andrew Boardman presented on the state of local taxes in Alaska to the Presentation at the Alaska Municipal League 2023 Tax Conference. Click here for the slide deck.
Income Tax Discussion Continues in Alaska
February 24, 2021 • By Carl Davis
Alaska is notoriously reliant on tax and royalty revenue from oil to fund vital public services and institutions, but declining oil prices and production levels have rendered those revenues inadequate to meet the state’s needs. ITEP analysis of potential state income tax options in Alaska shows the potential to raise between $526 million and $696 million per year yet are quite modest compared to personal income tax structures in other states. When measured relative to state residents’ incomes, any of these options would rank among the bottom five lowest state income taxes in the nation.
Comparing Flat-Rate Income Tax Options for Alaska
February 24, 2021 • By Carl Davis
Alaska lawmakers are facing an unprecedented fiscal crisis. The state is more dependent than any other on oil tax and royalty revenues but declines in oil prices and production levels have sapped much of the vitality of these revenue sources. One way of diversifying the state’s revenue stream and narrowing the yawning gap between state revenues and expenses would be to reinstitute a statewide personal income tax. Alaska previously levied such a tax until 1980. This report contains ITEP’s analysis of the distributional impact and revenue potential of a variety of flat-rate income tax options for Alaska, based on draft…
Voters Have the Chance in 2020 to Increase Tax Equity in Arizona, Illinois, and California, And They Should
October 22, 2020 • By Marco Guzman
There’s a lot at stake in this election cycle: the nation and our economy are reeling from the effects brought on by the coronavirus pandemic and states remain in limbo as they weigh deep budget cuts and rush to address projected revenue shortfalls.
Talking Taxes in Alaska
March 6, 2020 • By Carl Davis
Alaska’s tax system underwent major changes in the 1970s when oil was found at Prudhoe Bay. Lawmakers repealed the state’s personal income tax (making Alaska the only state ever to do so) and began balancing the state’s budget primarily with oil tax and royalty revenue instead. But as oil prices and production levels have declined, a yawning gap has opened between state revenues and the cost of providing vital public services.
Alaska: Who Pays? 6th Edition
October 17, 2018 • By ITEP Staff
ALASKA Read as PDF ALASKA STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next 4% Top 1% Income Range Less than $25,300 $25,300 to $42,100 $42,100 to $66,600 $66,600 to $122,200 $122,200 to $227,700 $227,700 to $508,000 over $508,000 […]
Tax Cuts 2.0 – Alaska
September 26, 2018 • By ITEP Staff
The $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called “Tax Cuts 2.0” or “Tax Reform 2.0,” which would make the temporary provisions permanent. And they falsely claim that making these provisions permanent will benefit […]
How the Final GOP-Trump Tax Bill Would Affect Alaska Residents’ Federal Taxes
December 16, 2017 • By ITEP Staff
The final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low- and middle-income Americans. The bill would go into effect in 2018 but the provisions directly affecting families and individuals would all expire after 2025, with […]
How the House and Senate Tax Bills Would Affect Alaska Residents’ Federal Taxes
December 6, 2017 • By ITEP Staff
The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Alaska residents.
State Rundown 11/29: Thanksgiving Leftovers Edition
November 29, 2017 • By .ITEP Staff
The State Rundown is back from Thanksgiving break with a heaping helping of leftover state tax news, but beware, some of it may be rotten.
How the Revised Senate Tax Bill Would Affect Alaska Residents’ Federal Taxes
November 14, 2017 • By ITEP Staff
The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Alaska, 43 percent of the federal tax cuts would go to the richest 5 percent of residents, and 4 percent of households would face a tax increase, once the bill is fully implemented.
How the House Tax Proposal Would Affect Alaska Residents’ Federal Taxes
November 6, 2017 • By ITEP Staff
The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family’s federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to expire or become less generous over time. Some of the provisions that benefit the wealthy, such as the reduction and eventual repeal of the estate…
GOP-Trump Tax Framework Would Provide Richest One Percent in Alaska with 51.8 Percent of the State’s Tax Cuts
October 4, 2017 • By ITEP Staff
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Alaska equally. The richest one percent of Alaska residents would receive 51.8 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $615,800 next year. The framework would provide them an average tax cut of $77,880 in 2018, which would increase their income by an average of 5.5 percent.
In Alaska 31.6 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
August 17, 2017 • By ITEP Staff
Click here for a pdf of this page A tiny fraction of the Alaska population (0.4 percent) earns more than $1 million annually. But this elite group would receive 31.6 percent of the tax cuts that go to Alaska residents under the tax proposals from the Trump administration. A much larger group, 44.8 percent of […]
State Rundown 8/2: Legislative Tax Debates Wind Down as Ballot Initiative Efforts Ramp Up
August 2, 2017 • By .ITEP Staff
Budget deliberations continue in earnest this week in Alaska, Connecticut, Pennsylvania, and Rhode Island. In South Dakota and Utah, the focus is on gearing up for ballot initiative efforts to raise needed revenue, though be sure to read about legislators nullifying voter-approved initiatives in Maine and elsewhere in our "what we're reading" section.
Trump Tax Proposals Would Provide Richest One Percent in Alaska with 45.9 Percent of the State’s Tax Cuts
July 20, 2017 • By ITEP Staff
Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Alaska would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,400,500 in 2018. They would receive 45.9 percent of the tax cuts that go to Alaska’s residents and would enjoy an average cut of $134,060 in 2018 alone.
State Rundown 7/11: Some Legislatures Get Long Holiday Weekends, Others Work Overtime
July 11, 2017 • By .ITEP Staff
Illinois and New Jersey made national news earlier this month after resolving their contentious budget stalemates. But they weren’t the only states working through (and in some cases after) the holiday weekend to resolve budget issues.
State Rundown 6/28: States Scramble to Finish Budgets Before July Deadlines
June 28, 2017 • By .ITEP Staff
This week, several states attempt to wrap up their budget debates before new fiscal years (and holiday vacations) begin in July. Lawmakers reached at least short-term agreement on budgets in Alaska, New Hampshire, Rhode Island, and Vermont, but such resolution remains elusive in Connecticut, Delaware, Illinois, Maine, Pennsylvania, Washington, and Wisconsin.
State Rundown 6/21: Crunch Time for Many States with New Fiscal Year on Horizon
June 21, 2017 • By Meg Wiehe
This week several states rush to finalize their budget and tax debates before the start of most state fiscal years on July 1. West Virginia lawmakers considered tax increases as part of a balanced approach to closing the state’s budget gap but took a funding-cuts-only approach in the end. Delaware legislators face a similar choice, […]
State Rundown 6/14: Some States Wrapping Up Tax Debates, Others Looking Ahead to Next Round
June 14, 2017 • By .ITEP Staff
This week lawmakers in California and Nevada resolved significant tax debates, while budget and tax wrangling continued in West Virginia, and structural revenue shortfalls were revealed in Iowa and Pennsylvania. Airbnb increased the number of states in which it collects state-level taxes to 21. We also share interesting reads on state fiscal uncertainty, the tax experiences of Alaska and Wyoming, the future of taxing robots, and more!
State Rundown 6/7: Kansas Success Story and Other State News
June 7, 2017 • By .ITEP Staff
This week, we celebrate a victory in Kansas where lawmakers rolled back Brownback's tax cuts for the richest taxpayers. Governors in West Virginia and Alaska promote compromise tax plans. Texas heads into special session and Vermont faces another budget veto, while Louisiana and New Mexico are on the verge of wrapping up. Voters in Massachusetts may soon be able to weigh in on a millionaire's tax, the California Senate passed single-payer health care, and more!
State Rundown 5/18: Tax Debate Heat Wave Hitting States
May 18, 2017 • By Meg Wiehe
This week saw tax debates heat up in many states. Late-session discovered revenue shortfalls, for example, are creating friction in Delaware, New Jersey, and Oklahoma, while special sessions featuring tax debates continue in Louisiana, New Mexico, and West Virginia. Meanwhile the effort to revive Alaska's personal income tax has cooled off.
Income Tax Offers Best Bang for the Buck in Alaska
April 25, 2017 • By Carl Davis
Earlier this month the Alaska House of Representatives voted 22-17 in favor of implementing a personal income tax for the first time in over 35 years. Gov. Bill Walker praised the bill shortly after passage, citing its ability to “provide a steady source of funding for essential services like public education and state troopers,” and […]
Comparing the Distributional Impact of Revenue Options in Alaska
April 24, 2017 • By Aidan Davis, Carl Davis
Alaska is facing a significant budget gap because of a sharp decline in the oil tax and royalty revenue that has traditionally been relied upon to fund government. This report examines five approaches for replacing some of the oil revenue that is no longer available: enacting a broad personal income tax, state sales tax, payroll tax, investment income tax, or cutting the Permanent Fund Dividend (PFD). Any of the options examined in this report could make a meaningful contribution toward closing Alaska’s budget gap. To allow for comparisons across options, this report examines policy changes designed to generate $500 million…
