04/25/2023 06:00 PM House WAYS & MEANS

            HB 109-REDUCE CORP. NET INCOME TAX RATE                                                                         
                                                                                                                                
6:32:54 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced that the  first order of business would                                                               
be HOUSE BILL NO. 109, "An  Act reducing the corporate net income                                                               
tax rate; and providing for an effective date."                                                                                 
                                                                                                                                
6:33:09 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER opened public testimony on HB 109.                                                                              
                                                                                                                                
6:33:41 PM                                                                                                                    
                                                                                                                                
ALLEN STRAH,  representing self,  expressed the opinion  that the                                                               
bill  is  "offensive,"  because the  state  would  be  leveraging                                                               
Alaskans with the  lost revenue from the corporate tax  cuts.  He                                                               
said that,  until oil subsidies  are eliminated, there  should be                                                               
no talk of taxing citizens of the  state.  He argued that a sales                                                               
tax would be  a regressive tax on residents,  while a progressive                                                               
income  tax  would  be  more  reasonable,  as  with  this  option                                                               
everyone  who makes  a living  in  Alaska would  be paying  their                                                               
share.                                                                                                                          
                                                                                                                                
6:36:13 PM                                                                                                                    
                                                                                                                                
DAVID LESLIE,  representing self, expressed the  opinion that the                                                               
idea of  proposing tax  cuts to corporations  while the  poor pay                                                               
[sales] tax  is "offensive" to  the residents  of the state.   He                                                               
argued  that such  a tax  would  have huge  implications for  the                                                               
Alaska  native  community, especially  those  who  live in  rural                                                               
areas.    He  suggested  that   there  could  also  be  financial                                                               
implications for women  and the LGBTQ community.   He opined that                                                               
the tax  has the largest  implications for the  most marginalized                                                               
groups in Alaska.                                                                                                               
                                                                                                                                
6:38:19 PM                                                                                                                    
                                                                                                                                
PHILLIP MOSER, representing self,  expressed the opinion that the                                                               
proposed  tax would  impact those  who live  in conditions  where                                                               
every cent  counts.  He pointed  out that in the  first ten years                                                               
of  the Willow  Project  the  state will  be  going into  further                                                               
deficit because of the tax credits associated with the project.                                                                 
                                                                                                                                
6:40:03 PM                                                                                                                    
                                                                                                                                
PETER VAN  FLEIN, representing self,  stated that a sales  tax is                                                               
the  most regressive  and expensive  form of  tax, especially  to                                                               
Alaskans, as  it is punitive to  rural residents.  He  added that                                                               
this would  require a  new state department.   He  explained that                                                               
such a  tax would be expensive  for businesses to implement.   He                                                               
argued that  corporations already do  not pay enough  income tax,                                                               
yet  they are  the most  intensive users  of infrastructure.   He                                                               
suggested that the greatest gain to  the state budget would be to                                                               
repeal  Senate Bill  21 [passed  during the  Twenty-Eighth Alaska                                                               
State Legislature].                                                                                                             
                                                                                                                                
6:41:53 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 6:41 p.m. to 6:49 p.m.                                                                       
                                                                                                                                
6:49:21 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER,  after ascertaining that  there was no  one else                                                               
who wished  to testify, closed  public testimony  on HB 109.   He                                                               
announced that HB 109 was held over.