Alaska Has a Two-Fold Problem, but primarily a spending problem.

Alaska has approximately 10% of the population of WA state.

WA state, with no income tax and a sales tax spends approximately $5,598 per person. Alaska with no income tax and no statewide sales tax spends approximately $18,196 per person.

Multiply Washington States $5,598 spending per person x 3.25 and you arrive at AK spending per person of $18,196. Granted it is more expensive to live and do business in AK than WA but is it three times more expensive?

Between 2014 and 2015 Alaska’s spending increased from 2.4 billion to 11.4 billion, a $9 billion or 17.22 percent increase. Was there a corresponding increase in revenue into the state from businesses and or federal largess? Or did we just deficit spend?

Is it really 3 times more expensive than WA state to operate Alaska’s state government? If so, why?

Let’s start with a spending cap before we start with an income or statewide sales tax.