Keep income tax plan simple

I was a recipient of the first PFD for $1,000. At the time I felt somewhat guilty in that I had not given anything to the state of Alaska. I paid no income tax, no vehicle tax, and no property tax, nothing. I retired from Alaska 20 years ago and now receive retirement pension plus the PFD and many other benefits because I’m a senior citizen. I still don’t contribute anything to the state of Alaska.

Each year probably all Alaskans apply for the Permanent Dividend Fund, plus a number of other people that shouldn’t be eligible. It’s a wonderful opportunity for Alaska to have everyone who applies for the PFD to file an income statement on the same sheet of paper showing that they filed a Federal tax return and how much they paid to the Feds. An Alaska tax could be based on that. Poor or less fortunate people probably would not owe anything to the state, but they would still receive the PFD. The out-of-staters that earn millions for the short time they are here working would also need to fill out a state income tax form and pay accordingly. A lot of needed info could be obtained this way. The important key is keep it simple.