Showing posts with label tax. Show all posts
Showing posts with label tax. Show all posts

Thursday, December 27, 2018

Article Not Quite Accurate When Comparing California And Alaska [Pot] Taxes

This might seem like a post on pot, it's really a post on journalism and packaging information.  A chart comparing pot taxes and a sentence referencing Alaska caught my attention in this Los Angeles Times article
"One year of legal pot sales and California doesn’t have the bustling industry it expected. Here’s why"

LA Times reports marijuana business in California is below expectations.

The second paragraph offers a list of reasons:

"But as the first year of licensed sales comes to a close, California’s legal market hasn’t performed as state officials and the cannabis industry had hoped. Retailers and growers say they’ve been stunted by complex regulations, high taxes and decisions by most cities to ban cannabis shops. At the same time, many residents are going to city halls and courts to fight pot businesses they see as nuisances, and police chiefs are raising concerns about crime triggered by the marijuana trade."

The article also has this chart comparing taxes in various states.

Chart from LA Times article

It's not clear from this chart exactly how Alaska's cultivation tax translates into a way to compare with California's sales and excise tax and its cultivation tax (1/5 of Alaska's) impact on prices.  It also leaves out the fact that local governments may add their own tax on marijuana.
  • So I did a quick comparison to an Anchorage store and an LA store to see their on-line prices.  :

    Anchorage - Alaska's Green Light District

    Sativa

     Headband - By Parallel 64                       1G  $18
    1/8
    $55
  • Cinderella Dream - By Parallel 64  
    1G
    $15
    1/8
    $50
  • Pineapple Dream - By Parallel 64   
    1G
    $15
    1/8
    $50

LA's The Pottery offers:

Happy House (s) - KNBIS  1/8 = $52   (says it includes all taxes, though there's a 10% charge for credit cards)

Cherry Sherbert - Passiflora (S)  1/8 = $50loc

Cherry AK (S/H)  Glass House  1/8 $50


[I just picked a store online near me where I'm staying in LA, and an Anchorage store that popped up online. Alaska stores have to use Alaska grown pot so I really don't think I can compare 'brands' like I could with, say, soft drinks.  But I picked Sativas.https://www.leafly.com/news/cannabis-101/sativa-indica-and-hybrid-differences-between-cannabis-types    These links probably won't last long as products and prices change.  Here's a guide to the quantities pot is sold in.]

There's one reference to Alaska in the text:

"With nearly a tenth of the population of California, that state has more licensed cannabis shops — 601. On a per capita basis, Alaska has also approved more pot shop licenses than California, — 94 so far. The state imposes a tax on cultivation, but there is no retail excise tax on pot."
First, Alaska approved pot in 2014, it went into effect in February 2015 and the first pot shop opened in October 2016.  

California voters didn't legalize pot until two years later.  The first legal recreational pot shop didn't open until January 2018.


So Alaska had a two year head start on California.  So it should have more licensed shops.  Also it took nine months longer than California to work out its regulations and have the first shops open, so maybe that meant fewer problems.  Though a less populated and more isolated state is probably easier to regulate.

I'd also point out that last sentence, while factual, may leave the sense that the lack of retail taxes might make a difference on prices.  As my quick comparison shows, if there is a difference, it's probably not significant.  It also doesn't mention that in Alaska local jurisdictions may tax marijuana.

What's notable about Alaska (state) marijuana taxes is that it is based solely on volume, not price.  

The other issues listed in the article - local resistance, excess regulation, the illegal market - probably are bigger issues than the taxes in California.




Tuesday, June 27, 2017

Notes On The News: The Symbolism Of Killing Obamacare, Of Travel Bans, Hawaiian Shirts, And Of Income Taxes

[These are my quick reactions to things I saw in the Alaska Dispatch News, paper edition, today.  Links are to what I could get online.  The ADN takes national stories from other papers, so the links get to them instead of ADN and may have different headlines.  And even the ADN articles online may have different headlines than the paper edition.]


1.  CBO:  22 million would join uninsured  

My Take:  The Republican brand has been anti-Obama for so long that they have forgotten what they are for.  Their key symbol of Obama has been the ACA or what they dubbed Obamacare.  And Trump, who wasn't particularly involved in Republican politics before his campaign, piggybacked on the Fox News generated hate of Obamacare among his 'base' and made 'repeal and replace' one of his key campaign goals.

So now  Majority Leader McConnell is willing to wreak havoc for tens of millions of Americans who will be edged out of health care access, just so he can say, "We got rid of Obamacare."  It would be fascinating to know what psychic demons are driving McConnell's sick mission.

This is all symbolism, with potentially deadly consequences for many Americans.

2.  Supreme Court to hear case on travel ban

Basically the court said the 90 day ban on people coming from six Muslim nations and the 120 day suspension on the nation's refugee program, could happen, but with limits.  Trump claims victory, travel advocates say the decision will impact only a few.
"The court said the ban could not be imposed on anyone who had 'a credible claim of a bona fide relationship with a person or entity in the United States.'”
Immigrant advocates say such a bonafide relationship means people with relatives in the US, who have been accepted into universities or been offered jobs, or asked to give a speech.  Most applicants meet these standards, the advocates say, so the ban will affect few people.

But I'm looking at the issues of dates and security.  This ban was imposed right after Trump took office, in late January.  A CNN report from Jan 29 says:
Trump barred citizens of seven Muslim-majority countries from entering the US for at least the next 90 days by executive order, which a senior White House official said later Friday is likely just a first step toward establishing a broader ban.
"Trump also stopped the admission of all refugees to the United States for four months.
During that time, Trump's secretary of state will review the application and screening process for refugees to be admitted to the US."
So they've had plenty of time - more than the 90 and 120 days - to expand the ban and review the refugee process.    They should be ready now. If not,  it will be nearly another 120 days before the court hears the case.  So it will be moot.  Except probably what they wanted won't be allowed.

Trump said in February, "nobody knew that healthcare could be so complicated."  Of course we all knew, and we all know now that if Trump doesn't know something, he believes 'nobody knows' it. Middle East peace isn't as easy as he thought either.  

He also had no idea of the high level of vetting that already existed for refugees  to get into the United States.  And he still has no idea of the suffering and hardships and fear refugees experience trying to get out of danger and into a permanent home, and how his polices just makes things worse for them.  And our Republican controlled congress. . . well see the first headline above.  The bans were just symbols for his base and his own ego.


3.  Rick Koch (1956 - 2017) 
"For the Celebration of Life, attendees are invited to wear loud Hawaiian shirts, awful camouflaged shorts and/or mismatched prints in honor of Rick's truly horrendous fashion sense."
An obituary that starts out like this suggests that the good things it says about Rick Koch are probably true.  He died too young (age 60 in a motorcycle accident), but it sounds like he was a good man who loved people and helping out.

3.  How to fix alaska's fiscal problem for the long haul

When I read this title, it hit me:  everyone is talking about a fiscal problem.  Alaska has no fiscal problem, we have an ideology problem  - the Senate majority is so stuck on the evils of an income tax that they can't see the forest for the trees.  As this opinion piece spells out, the compromise our legislature just made, pretty much drained the Constitutional Budget Reserve (CBR).
 A $13 billion CBR could have generated $650 million a year – year after year after year. At the end of the coming fiscal year, according to press reports, only $2 billion will be left.
This is a good piece (translation:  I agree with most of it, though I think he's a bit near-sighted about the Permanent Fund) and I recommend people read it.  A step in changing the ideology problem in the state senate is the announcement that Fairbanks representative Scott Kawasaki is seriously considering running for the state senate seat now held by Senate Majority leader Pete Kelly.

Tuesday, June 20, 2017

Alaska Budget Crisis - Head Tax

There's so much to write about, but not nearly as much time to do sufficient research to say something  that adds meaningfully to what others have already said.  So I'm going to keep this really focused.

Senator Click Bishop has introduced SB12 which establishes a head tax.  I had some questions about how that would work and contacted my Senator, Berta Gardner.  So I can say something with a bit of authority on this.

We used to have a head tax - I remember it being minimal, like $10 from everyone's first paycheck of the year.  But if 200,000 people got at least one paycheck a year (our population was much lower then) it would still amount to $2 million.   Sen. Bishop's bill would have several levels based on income, so it would be somewhat progressive.

However, it's only for people on a payroll.  So people with other kinds of income - pensions, rental properties, investment income, etc.  would not have to pay.  That seems blatantly unfair and why a graduated income tax is a better option.  Though I'd vote for the simplest-to-calculate income tax possible - like a percent of the federal taxes.  Minimum wage workers shouldn't have to pay if people with much larger, but unearned, incomes don't.

The one benefit of this tax is that it does include non-residents who work in Alaska.

Senator Gardner also wrote it could be part of the compromise package  if the Senate ever agrees to any new revenue.  She also said there haven't been any hearings on the bill.

Friday, April 28, 2017

What's In A Name? Instead Of Taxes, How About An Alaska Membership Fee?

As our legislature struggles to come up with a way to balance the Alaska state budget, we see the cut expenses camp duke it out with the raise income camp.  Taxes, particularly income taxes, are anathema to key Republicans, like Senate President Pete Kelly.  It seems just the word 'tax' is the biggest obstacle.  So I'd like to repost a piece from last year:  

 Instead Of Taxes, How About An Alaska Membership Fee?

Back in 2008, at his corruption trial, Vic Kohring said that he had signed a 'no taxes' pledge.  He could not vote for any tax.  However, if the tax were called a fee, he might be able to vote for it.

Eight years later we still have legislators who are allergic to the word 'tax' and break out in hives and start hyperventilating when anyone utters the word.  Some key legislators in Juneau are willing to inflict enormous damage to the state of Alaska rather than even consider something like an income tax.

I have a proposal.

The Alaska Membership Fee

Everyone who lives or works  in Alaska is eligible to buy a membership.  Memberships would be sold on a sliding scale based on factors such as net worth, income, location, age, amount of time in Alaska each year, etc.

The biggest attraction of the membership would be:

  • eligibility to apply for an Alaska Permanent Fund Check  - it wouldn't guarantee eligibility for the check, but without  an Alaska Membership Card (AMC) one couldn't apply.  

There could be a number of other perks one gets with an AMC such as:

  • free public K-12  education
  • discounts (or even free pass for higher levels) at state parks, state ferry, state run airports
  • access to Pioneer Homes
  • discounts and scholarships at University of Alaska campuses
  • discounts for driver's license, fishing licenses, hunting licenses, etc.
  • use of the Anchorage LIO when legislators aren't there
People who live in rural areas will have different needs from people who live in urban areas.  Age may also lead to different kinds and levels of service.  These can  all be figured out.  Or, the legislature might decide that simplicity may be preferable to complicated pricing and eligibility requirements and choose to use one or two factors, such as income or net worth.  

Alaska Membership would help people realize the different benefits they get from the state that they normally enjoy without even thinking about it.  After all, good government is invisible.  Most people only notice government when it stops working well:
  • when diseases break out 
  • when potholes aren't repaired
  • when traffic lights don't work
  • when police abuse citizens
  • when foster kids are abused
  • when their own kids don't learn at school 
  • when garbage piles up and air is polluted 
  • when the water is no longer safe to drink
  • when state parks are all closed and local park equipment is broken
  • when voting machines are hacked
  • when gasoline pumps show more gallons than you actually got
When such government services break down, we end up paying more to deal with the consequences:
  • higher insurance and repair bills because of poorly engineered and maintained roads, contaminated water and air, and crime
  • lost work days and other health costs because of lack of sanitation or access to basic health care
  • shortsighted legislators because of poor schooling
  • lost work time because of long waits in line at state offices because there aren't enough employees
  • higher need for police, courts, and social services because foster kids aren't well supported
  • weaker economy because business can't get good employees when government services make Alaska an undesirable place to live
You get the point.  Some of our influential legislators don't.  Their mantra is 'government is bad,'  and  'taxes are worse." 

But we wouldn't have to have an income tax or a sales tax.  Instead we'd all become members of the State of Alaska and our membership fees would go towards all those services that our legislators say are wasteful luxuries, like health care for the working poor, like school teachers for our kids.  

Mostly, the creation of Alaska Membership would remove the key obstacle for those legislators who,  like Kohring,  can't accept the word tax, but could get behind a fee.  And it would be voluntary.  No one would have to join, but they couldn't apply for the Alaska Permanent Fund  check if they didn't.  And they could get basic state services for free (non-members would have to buy guest passes, say for campgrounds or public school) and they could buy Alaska T-shirts and hats at a discount.  

I'd note that plenty of organizations, public and private, already use sliding scale fees for their services.  Here are just a couple of examples: 


Airlines
Health Care
Independent Adoption Center
Golf Clubs and Health Clubs
Private Schools
Universities
Movies
Museums
Hotels

This could set a trend for the rest of the country.  A membership card would prove you were a 'real' Alaskan.  So much cooler than paying an income tax.  

If you agree, then send this post to your legislator.  You can find their contact information here.  http://w3.legis.state.ak.us/docs/pdf/whoswho.pdf

Wednesday, September 21, 2016

My Degeneration, First Blood, Loving God's Wildness, Ket'aq, Show Time, Thermal Physics, and Digital Storytelling

Some books I saw on the new books shelf at UAA library yesterday.






My Degeneration

I was delighted to see local blogger Peter Dunlap-Shoal's graphic story of living with Parkinson's had made its way into the library.  This is an incredible book that only Peter, as a cartoonist with an  impish curiosity could pull off so well.

He treats his current life like an epic heroic adventure against a relentless adversary. The comments on his blog show that it brings comfort to others with the disease and it's incredibly valuable for people who are around them.





  Schroeder's Thermal Physics

This was originally published (with the same cover) in 1999. From Good Reads:

"This might be my favorite physics text book ever (on any subject). It's very readable - strikes a balance between big picture concepts and calculations. I also love how the book explains the connections between the microscopic description of statistical physics and macroscopic thermodynamics. (I wish I knew of a quantum mechanics text book that did this as well.) I used this book intensively while struggling through my graduate Stat Mech class (in retrospect, my undergraduate engineering oriented class on thermodynamics was not adequate preparation), and I'm not sure I would have made it through pancreas...? pathogen...? oh, Pathria... (whatever -- at the time I'm pretty sure it made me feel sick in various vital organs) without it. Although I haven't taught an entire class on thermal physics I have drawn on it heavily when teaching units on entropy and heat engines. In all honesty, I'm not sure how much my students appreciate this, but I at least still appreciate the insights I get! (If only I had found Schroeder's book on Quantum Field Theory as illuminating!) This book is geared towards advanced undergraduate physics majors, but like the Feynmen lectures, there are nuggets here that transcend the intended audience. Unlike the Feynmen lectures, this text is also helpful for solving actual problems. Highly recommended!"

Most of the comments there are in the same vein, but there is also this:
"I found this textbook very frustrating. Not nearly enough theory."



First Blood and The Blockade

From Wikipedia:

The Civil War book series (OCLC 20080930) chronicles in great detail the American Civil War. Published by Time Life the series was simultaneously released in the USA and Canada between 1983 and 1987, with subsequent identical reprints in the late 1980s - early 1990s following suit for foreign, though untranslated, dissemination as well. Some titles focused on a specific topic, such as the blockade, and spies, but most volumes concentrated on the battles and campaigns, presented in chronological order. Each volume in the series was 176 pages in length, heavily illustrated and with pictorial essays on specific topics within each volume and came standard without a dust jacket. Executed in hardcover, each volume was bound in silvery-gray leatherette, the cover endowed with in deep blue printed text imprints, and heavily embossed with Civil War symbology with an oval shaped illustration glued on. There are 28 volumes in the series
:

So, if you're thinking like I am - that these seem to not be 'new books,' - you'd call the reference desk and ask about them. And librarian Ralph Courtney said that the Civil War books and probably the Physics text are gifts that have been donated to the library. And that a lot of the new books to the library right now would fit in that category.


 Ket'aq and Mingqutem Iinga

I couldn't find anything on either of these books - and when I thumbed through them in the library I didn't see anything written in English.  But my google search did land me on an article about St. Lawrence Island by Sarah Garland,   "In remote Alaskan villages, teachers struggle to make school meaningful" that also appeared in The Atlantic.

It had this memorable phrase:
"Despite the near-fatal brush with Western culture, the Yupiks rebounded. . ."
 In any case, these appear to be Yupik language children's books.



Loving God's Wildness: The Christian Roots of Ecological Ethics in American Literature;

From a Project Muse review of Jeffrey Bibro's book:
"When the Puritans arrived in the New World to carry out the colonization they saw as divinely mandated, they were confronted by the American wilderness. Part of their theology led them to view the natural environment as “a temple of God” in which they should glorify and serve its creator. The larger prevailing theological view, however, saw this vast continent as “the Devil’s Territories” needing to be conquered and cultivated for God’s Kingdom. These contradictory designations gave rise to an ambivalence regarding the character of this land and humanity’s proper relation to it. 
Loving God’s Wildness rediscovers the environmental roots of America’s Puritan heritage. In tracing this history, Jeffrey Bilbro demonstrates how the dualistic Christianity that the Puritans brought to America led them to see the land as an empty wilderness that God would turn into a productive source of marketable commodities. Bilbro carefully explores the effect of this dichotomy in the nature writings of Henry David Thoreau, John Muir, Willa Cather, and Wendell Berry. 
Thoreau, Muir, Cather, and Berry imaginatively developed the Puritan theological tradition to propose practical, physical means by which humans should live and worship within the natural temple of God’s creation. They reshaped Puritan dualism, each according to the particular needs of his or her own ecological and cultural contexts, into a theology that demands care for the entire created community. While differing in their approaches and respective ecological ethics, the four authors Bilbro examines all share the conviction that God remains active in creation and that humans ought to relinquish their selfish ends to participate in his wild ecology. . ."


The Tax Aspects of Acquiring a Business

I tried to find a review of W. Eugene Seago's book, but could only find book selling websites.  This blurb comes from Readara:

"The decisions about whether to purchase a business and the price to pay is usually a matter of determining the present values of future cash flows and the availability of funds to acquire the business. Generally, each dollar of cash flow has an associated tax effect and therefore the numbers are meaningless if taxes are omitted from the calculations. Each dollar paid for the business will eventually become a tax deduction, either as an expense or recovery of capital investment. The present value of the benefit of the deductions or cost recovery depend upon when the tax benefit will be realized, the marginal tax bracket of the entity receiving the deduction and the discount rate assigned to the benefit. This book is intended to provide the tools to take into account the tax consequences of how the acquisition is structured. The acquisition may be a purchase of business assets, partners interests, or stock of a corporation, and may be undertaken by an individual, an existing business organization, or a newly formed entity. The consideration may be all cash, cash and debt, or equity interests. The tax consequences of the structure of the acquisition can vary widely, depending upon the form of the transaction. This book will provide a framework for analyzing the forms the transaction can take and the resulting tax consequences. As will be seen in this book, the old adage of substance over form often loses its significance in business acquisitions: Form matters. The audience for this book is graduate business students."

 Show Time:  The 50 Most Influential Exhibitions of Contemporary Art
We Make Money Not Art gives a long and detailed review of the book. Here's a short excerpt:
"Show Time examines the most game-changing and risk-taking exhibitions of the past 30-ish years. The survey begins in the late 1980s when the Cold War ends and globalization takes off. The book surprised me. I knew i’d find beautiful images, compelling ideas and elegant texts in there and i haven’t been disappointed. But i also thought that Show Time would provide me with a clear confirmation that contemporary art is far too busy contemplating its own navel to question its relevance in today’s society and to engage with a public whose idea of a wise investment does not involve shelling out 32 pounds to enter the immaculate tents of the Frieze art fair. But i was wrong (up to a certain extent) as many of the innovative exhibitions the author selected not only show the evolution of the profession but also a clearer desire to go and meet the public whoever and wherever it may be. Another fairly recent trend in curatorial practice is to cross boundaries, to explore and communicate with other practices such as theater, architecture, literature, science (though i didn’t find any convincing example of art&science exhibition in the book), etc. The book explores nine themes in contemporary curating"
It then goes on to discuss each of those themes.  Go to the link to find them.



Digital Storytelling


From the author Carolyn Handler Miller's website:
"The new edition contains up-to-date material about hot areas like tablet computers and how to create content for them; the latest developments in gamification, mobile apps and second screen TV, and an updated chapter on transmedia storytelling, with new case studies. It also contains a brand new chapter on harnessing social media for storytelling purposes. In short, the entire book is revised and updated. Meanwhile, the second edition of my book continues to be the only book on the market to cover the entire arena of content creation for digital media. It is still completely relevant and contains timeless information about character development, structure, and the development process. It also covers transmedia storytelling, Alternate Reality Games (ARGs), virtual worlds and serious games. In addition, it contains an entire multi-chapter section on using digital storytelling techniques for information, education, training, promotion and marketing."



Saturday, June 04, 2016

IRS Issues Seem To Be Resolved

I've written before about my saga with the IRS and the payroll tax snafu for my mom's caregiver.  This is related to my mom's 2014 taxes.  Long story, short, three quarters taxes were put into a business account.  The fourth quarter was paid with my mom's personal taxes.  (Details are in the link above, but I was working with my mom's tax accountant AND a payroll company that was supposed to do all the reporting and paying of taxes.)

So, in early 2015 I started getting letters from the IRS.  From the business side, they said, "We have $12,000, but no return was filed."  From the personal side, "You owe us $12,000."

I would call and explain and they were very nice and understanding, but each month I'd get more letters, with interest and penalties added.  No one I called - and often I had to wait one or two hours to even talk to someone - was able to fix it.

Eventually, someone told me to amend the personal taxes and get the payroll taxes out of there.  That happened around last September.

At one point I went to my local IRS office because the permission I had to talk on behalf of my mother ended when she passed away and I had to get permission all over again.  The local IRS person was actually able to see both sides - personal and business - on the computer and make some changes.  But not enough.  The letters and penalties kept coming.  I kept calling.

One agent said to call the Taxpayer Advocate office.  But they had changed the rules a couple weeks earlier and no longer helped out in "long term unresolved problems."  Only hardships.  Mine wasn't a hardship.  I wasn't going to lose my house over this.

At this point I called Senator Murkowski's office in total frustration.  They took my information.  A couple of weeks later I got a call from the Alaska taxpayer advocate.  It seems that in addition to the office I'd called, there's an advocate in every state as well.

She's been working on this for about six months now.  She's managed to
1.  get the money out of the personal side and into the business side
2.  get the personal side to remove all penalties and additional interest, and finally
3.  get the business side to remove all penalties and additional interest

I would note that after she called me to say the personal side is set and she thought the business side would be resolved shortly, I got a letter saying the IRS was going to seize my assets to cover the $1300 in penalties and interest that had accumulated on the business side.

But the advocate, when I called, said not to worry, the business side had removed all the penalties as well.

Not only were the penalties removed, the personal side sent me a $30 check refund, and the business side finally sent me a letter saying all the penalties have been removed and they are sending $130 refund.  That I haven't seen yet.

I still think it is crazy that no one was ever able to just go into the computer and move the money from one account to the other until the advocate got involved.  This was a completely simple and easy to understand issue.  All the money had been sent to the IRS in a timely way.  They just had to move some of it from one account to another.

I understand that the anti-government and anti-tax bias Congress results in underfunding for the IRS which is the cause for the long delays and for the lack of well trained agents.  But someone should have fixed this in early 2015 instead of mid 2016 and they would have saved all kinds of time for me and for the IRS in dealing with my simple problem.

The  underfunding for the IRS means agents spend all their time with people like me who have tried to do the right thing get dinged from computer generated laters that don't understand the context, and they don't have time to go after people who are actively engaged in fraud.

For some in Congress, that is probably the intent.  For others, the intent is to erode government so more people get pissed off at government inefficiency and vote to shut down government.  Others are just following the cult of no government.  And probably some are mixing all three motives.

But I'd like to thank Sen. Murkowski's office for hooking me up with the Alaska tax advocate and the advocate - Cindy - for putting this to rest.  The only thing left is that final refund check.

For anyone who has a nanny or a caregiver that they are employing close to full time, I'd highly recommend the payroll company we used for 2015 - Homepay.  They specialize in doing the taxes for home based employees and my mom's CPA had nothing but praise for the reports they sent him and the payments they made to the state and the IRS.  It also was much easier for me to use to pay my mom's caregiver - I could put in the hours online and figure it out and I found a way through Chase to transfer the money directly into the caregiver's bank account.  I think it was called quickpay.

Gotta run and get someone from the airport.

[UPDATE July 20, 2017:  New post is up now with a new 'discrepancy is resolved' letter that I got today.]

Saturday, April 02, 2016

Instead Of Taxes, How About An Alaska Membership Fee?

Back in 2008, at his corruption trial, Vic Kohring said that he had signed a 'no taxes' pledge.  He could not vote for any tax.  However, if the tax were called a fee, he might be able to vote for it.

Eight years later we still have legislators who are allergic to the word 'tax' and break out in hives and start hyperventilating when anyone utters the word.  Some key legislators in Juneau are willing to inflict enormous damage to the state of Alaska rather than even consider something like an income tax.

I have a proposal.

The Alaska Membership Fee

Everyone who lives in Alaska is eligible to buy a membership.  Memberships would be sold on a sliding scale based on factors such as net worth, income, location, age, etc.

The biggest attraction of the membership would be:

  • eligibility to apply for an Alaska Permanent Fund Check  - it wouldn't guarantee eligibility for the check, but without  an Alaska Membership Card (AMC) one couldn't apply.  


There could be a number of other perks one gets with an AMC such as:

  • free public education
  • discounts (or even free pass for higher levels) at state parks, state ferry, state run airports
  • access to Pioneer Homes
  • discounts and scholarships at University of Alaska campuses
  • discounts for driver's license, fishing licenses, hunting licenses, etc.
  • use of the Anchorage LIO when legislators aren't there
People who live in rural areas will have different needs from people who live in urban areas.  Age may also lead to different kinds and levels of service.  These will all be figured out.  Or, the legislature might decide that simplicity may be preferable to complicated pricing and eligibility requirements and choose to use one or two factors, such as income or net worth.  

Alaska Membership would help people realize the different benefits they get from the state that they normally enough without even thinking about it.  After all, good government is invisible.  Most people only notice government when it stops working well:
  • when diseases break out 
  • when potholes aren't repaired
  • when traffic lights don't work
  • when police abuse citizens
  • when foster kids are abused
  • when their own kids don't learn at school 
  • when garbage piles up and air is polluted 
  • when the water is no longer safe to drink
  • when state parks are all closed and local park equipment is broken
  • when voting machines are hacked
  • when gasoline pumps show more gallons than you actually got
When such government services break down, we end up paying more to deal with the consequences:
  • higher insurance and repair bills because of poorly engineered and maintained roads, contaminated water and air
  • lost work days and health costs because of lack of sanitation or access to basic health care
  • shortsighted legislators because of poor schooling
  • lost work time because of long waits in line because there aren't enough employees
  • higher need for police, courts, and social services because foster kids aren't well supported
  • weaker economy because business can't get good employees when government services make Alaska an undesirable place to live
You get the point.  Some of our influential legislators don't.  Their mantra is 'government is bad,'  'taxes are worse." 

But we wouldn't have to have an income tax or a sales tax.  Instead we'd all become members of the State of Alaska and our membership fees would go towards all those services that our legislators say are wasteful luxuries, like health care for the poor, like school teachers.  

Mostly, the creation of Alaska Membership would remove the key obstacle for those legislators who,  like Kohring,  can't accept the word tax, but could get behind a fee.  And it would be voluntary.  No one would have to join, but they couldn't apply for the Alaska Permanent Fund  check if they didn't.  And they could buy Alaska T-shirts and hats at a discount.  

I'd note that plenty of organizations, public and private, already use sliding scale fees for their services.  Here are just a couple of examples: 


Airlines
Health Care
Independent Adoption Center
Golf Clubs and Health Clubs
Private Schools
Universities
Movies
Museums
Hotels