text: So which is worse for the Alaska economy: budget and PFD cuts, or income taxes? 
  Budget and PFD cuts are worse. Analysis by economists at ISER shows that, under low and high scenarios, $500 million in progressive income taxes will cost the Alaska economy between 2,720 and 3,930 full-time-equivalent (FTE) jobs; permanent fund dividend cuts cost between 2,790 and 4,460 FTEs; and broad-based state budget cuts take out 4,900 to 6,300 jobs. 
     There are three reasons that income taxes have a lighter economic impact than the other two strategies: 1. Over 20 percent of our workforce is nonresidents; under HB 115 they would contribute $80 million to help support the roads, airports and services they use; 2. progressive taxes have a higher economic multiplier than regressive taxes; and 3. income taxes paid to the state are deductible against the federal income tax.
     If you find these arguments compelling, contact your State Senator and ask them to reconsider their vote last Friday.