On Jan. 23, 1987, Gov. Steve Cowper announced a new addition to his fiscal plan: implementing an income tax to generate more funds for the state. During his State of the Budget address Thursday, Cowper introduced his 3 percent tax idea to the state Legislature, stating that “while I don’t know of anyone who wants to pay a state income tax again, the fact is that some form of a tax on ourselves is necessary.” The tax drew some heat, with state legislators willing to give the idea a fair hearing but still ambivalent as to whether it should be implemented. The lawmakers did agree on something: that Cowper was bold in his decision to announce his idea of a tax so early in the term. With the tax, Cowper noted there would be no need to take away Alaskans’s Permanent Fund Dividend
Juneau officials, on the other hand, were left to decipher the governor’s cuts and how it would affect the city. With so many budget cuts affecting education, seniors and more, if Cowper’s plan was to be completely accepted by the state Legislature, Alaska life and its economy would be transformed completely by the end of session.
“This Day in Juneau History” is compiled by Empire freelancer Tasha Elizarde, who sums up the day’s events — 30 years ago — by perusing Empire archives.
