To Slow Down or To Speed Up Governor’s Tax Proposal?

Date: January 19, 2018

House, Senate will take approaches on bills to place a levy on wages and self-employment earnings

State Director Denny DeWitt reports from the State Capitol on the legislative week ending January 19

To expedite or to delay?

It was clear from the start which course of action the House and Senate are taking on Gov. Bill Walker’s proposals to tax wages and self-employment earnings, House Bill 281 and Senate Bill 139

The House leadership that likes taxes gave the House Bill only one committee of referral. The Senate that doesn’t much care for income taxes gave the Senate Bill three committees of referral.

HB 281 and SB 139 are copies of the bills the governor introduced in the 4th special session he called in 2017. They went nowhere in that session and there is great expectation that these bills will see the same fate.

The governor’s proposal is to assess a 1.5 percent tax on wages and self-employment income. It excludes the income from investment, public assistance income, and any other non-wage-based income from sharing part of the “broad-based participation,” to use Governor Walker’s term.

NFIB will continue to oppose these bills.

Independent Contractors

NFIB expects to see a new version of Sen. Cathy Giessel’s SB112 to be introduced January 22. It will include language NFIB was able to work out on independent contractors. It will deal with rehabilitation and improving the adjudication process. According to Senator Giessel, it is time to refocus workers’ compensation on the injured worker and not on health-care providers and lawyers. Many portions of the bill will be positive for small businesses.

Previous Reports, News Releases, Guest Editorials

January 12 Report—Alaska Legislators Return for Business, January 16

December 19 News Release—Alaska Small-Business Owners Vote on Four Issues Ahead of Session

[Tile photo courtesy of The Alaska State Legislature’s Capitol Updates]


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