ANCHORAGE, Alaska (AP) — Gov. Bill Walker will propose a head tax on Alaskans to partially fill the multi-billion dollar gap between state revenue and spending.
The governor, an independent, at special legislative session next month will propose a 1.5 percent flat tax on wages or self-employment income.
Retirement income such as Social Security would not be taxed. Interest income, dividends and capital gains also would not be taxed.
The tax would be capped at $2,200 or double the previous year's Alaska Permanent Fund dividend. This year's dividend is announced at $1,100, so the maximum tax paid, at an income level of $147,000 or above, would be $2,200.
Department of Revenue Commissioner Sheldon Fisher says the tax is projected to take in about $320 million, leaving a revenue gap of up to $500 million.
The Governor on Friday issued a formal proclamation calling the Legislature back for a fourth special session this year to commence on Monday, October 23.