Alaskan Governor, Bill Walker, is proposing the state’s first income tax in 35 years. The income tax proposal, along with a budget proposal, are a part of the The New Sustainable Alaska Plan.
Alaska is currently the only state to have neither an income tax or a sales tax. However, with oil prices at seven year lows, the state is struggling to find income to tackle their now 3.5 billion dollar deficit.
The state will be looking at ways to cut their budget and increase revenues in order to avoid tapping into their 9 billion dollar savings account. Outside of oil, industries like fishing and mining would be impacted under the new proposal.