HB 185 applies the tax at income levels of $75K & above (for individuals) and $150K and above (where there are two or more adults in the family). Even then, additional revenues are required to balance the budget at all projected PFD levels.
After this column was published, we were asked what the income level cutoff would need to be at each projected PFD level to preserve the "full PFD" for the remainder. We did some calculations based on the numbers we used in the column. Very roughly:
* The cutoff would need to be around $28K (& $56K) to preserve a full statutory PFD for those falling below those thresholds (put another way, roughly only 19% of Alaskans would receive a PFD),
* The cutoff would need to be around $31K (& $62K) to preserve a full POMV 50/50 for those falling below those thresholds (roughly only 22% of Alaskans would receive a PFD), and
* The cutoff would need to be around $56K (& $112K) to preserve a full POMV 25/75 for those falling below those thresholds (roughly only 41% of Alaskans would receive a PFD).
So if I understand, a flat tax, your preferred alternative, is essentially an annual offset to the permanent fund for Alaskans, and a very minor burden for corporations and out of state workers, who presently contribute little to our operating costs.
HB 185 applies the tax at income levels of $75K & above (for individuals) and $150K and above (where there are two or more adults in the family). Even then, additional revenues are required to balance the budget at all projected PFD levels.
After this column was published, we were asked what the income level cutoff would need to be at each projected PFD level to preserve the "full PFD" for the remainder. We did some calculations based on the numbers we used in the column. Very roughly:
* The cutoff would need to be around $28K (& $56K) to preserve a full statutory PFD for those falling below those thresholds (put another way, roughly only 19% of Alaskans would receive a PFD),
* The cutoff would need to be around $31K (& $62K) to preserve a full POMV 50/50 for those falling below those thresholds (roughly only 22% of Alaskans would receive a PFD), and
* The cutoff would need to be around $56K (& $112K) to preserve a full POMV 25/75 for those falling below those thresholds (roughly only 41% of Alaskans would receive a PFD).
So if I understand, a flat tax, your preferred alternative, is essentially an annual offset to the permanent fund for Alaskans, and a very minor burden for corporations and out of state workers, who presently contribute little to our operating costs.