HB  37-INCOME TAX; PERMANENT FUND; EARNINGS RES.                                                                    
                                                                                                                                
4:05:36 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that  the next order  of business                                                               
would be  HOUSE BILL NO.  37, "An  Act relating to  deposits into                                                               
the dividend fund; relating to  income of and appropriations from                                                               
the earnings reserve account; relating  to the taxation of income                                                               
of  individuals,   partners,  shareholders  in   S  corporations,                                                               
trusts,  and   estates;  relating   to  a  payment   against  the                                                               
individual   income  tax   from  the   permanent  fund   dividend                                                               
disbursement; repealing  tax credits  applied against the  tax on                                                               
individuals under  the Alaska Net  Income Tax Act;  and providing                                                               
for  an  effective  date."     [Before  the  committee  was  CSHB                                                               
37(W&M).]                                                                                                                       
                                                                                                                                
CHAIR KREISS-TOMKINS opened public testimony on CSHB 37(W&M).                                                                   
                                                                                                                                
4:06:21 PM                                                                                                                    
                                                                                                                                
CARRIE HARRIS  emphasized her strong  opposition to  the proposed                                                               
implementation of an income tax.                                                                                                
                                                                                                                                
4:06:54 PM                                                                                                                    
                                                                                                                                
MIKE  COONS   shared  his  strong  opposition   to  the  proposed                                                               
legislation.   He  believed the  legislature was  "stealing money                                                               
from the PFD  and the people of Alaska."                                                                                        
                                                                                                                                
4:09:02 PM                                                                                                                    
                                                                                                                                
ED MARTIN stated  his adamant opposition to the bill.   He opined                                                               
that an income tax would not  be fair.  Further, he believed that                                                               
a dividend reduction was in itself  a tax on people's income.  He                                                               
urged  the  legislature  to  audit  all  the  state  agencies  to                                                               
identify deficiencies.                                                                                                          
                                                                                                                                
4:11:59 PM                                                                                                                    
                                                                                                                                
RON JOHNSON stated his support  for the proposed legislation.  He                                                               
believed it was  a good alternative to the 50/50  split, which he                                                               
characterized as unsustainable.  He  pointed out that HB 37 would                                                               
produce a dividend of over $1,000;  further, he said he liked the                                                               
idea  of   flat  2.5  percent   tax,  which  he   believed  would                                                               
incentivize the public to participate in government activities.                                                                 
                                                                                                                                
4:14:02 PM                                                                                                                    
                                                                                                                                
JOHN LARSON  expressed his  support for  HB 37.   He  pointed out                                                               
that quality  schools, roads,  and domestic  violence prevention,                                                               
for  example,   required  proper   funding.     Additionally,  he                                                               
highlighted  the  importance of  preserving  the  PFD for  future                                                               
generations of Alaskans.                                                                                                        
                                                                                                                                
4:15:26 PM                                                                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS  closed  public   testimony.    Hearing  no                                                               
questions from committee members,  he announced that CSHB 37(W&M)                                                               
was held over.                                                                                                                  
                                                                                                                                
4:16:37 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:16 p.m. to 4:19 p.m.