4-28-17 Alaska Governor Justifies ‘Broad Based Tax’

Alaska Governor Bill Walker. NGP File Photo by Dave Harbour

Wednesday, Alaska Governor Bill Walker’s administration took another step toward justifying creation of a broad based tax on his state, beset with deficits created by low oil prices and steadily increasing government spending.

He began by outlining the spending programs required by a state over twice the size of Texas with few roads and a small, scattered population.  He then described how, in his view, the Legislature and his Administration have already done as much as possible to trim expense (i.e. though at our last check one of the proposed legislative budgets was larger than last year’s).

His Commissioner of Revenue and OMB Director briefed reporters on their research to which the Governor had referred.

Below, we provide a video of the actual press conference which our readers will find interesting.  We will leave any further critique to others and encourage them to comment below.  We have already had much to say on this subject and would close with one critical reminder.

Governor Walter J. Hickel. Northern Gas Pipelines file photo by Dave Harbour

Alaska’s Constitution and the 1959 Statehood Act itself were based on Federal promises of natural resource development on 104 million acres of state land as well as natural resource revenue sharing on federal lands.  We have joined former Governor Walter J. Hickel and others in referring to these as “broken promises”.

The federal government over the years has choked Alaska natural resource exploration and development potential.  This has constituted a “clawing back”, a “taking” of the property value and promises made to Alaska’s citizens.  

It is clear to us that not only has Alaska spent too much on too many amenities (i.e. however justified by its ‘uniqueness’), but the Federal government has exacerbated Alaska’s budget crisis by cheating the populace from its birthright.  The federal government has eliminated the basis upon which the people voted to accept the statehood compact.

We believe that imposition of any new taxes should have a sunset clause.

We believe the current Administration should, when realizing it is in a budget  deficit hole, stop digging.   

The government should focus more seriously on reducing the size of government.  It should reverse its recent decision to expand Medicaid — which it cannot afford to subsidize — and it should immediately cease wasting money trying to promote a currently uneconomic, government-owned and bureaucrat-led Alaska North Slope natural gas transportation project.