On taxes, the gap between the coalition majority that runs the Alaska House of Representatives and the predominantly Republican Senate Majority can literally be measured in miles.<\/p>\n
While the Alaska House debates changes to criminal justice, most state senators are decamping to their home districts rather than consider the other issue on the special session agenda: a state payroll tax.<\/p>\n
“When there’s something to do, we’ll come back together,” Senate President Pete Kelly told the Empire on Monday.<\/p>\n
The senators’ departure will save some money — they likely won’t claim per diem while away from the capitol — but it also illustrates how far the Legislature is from fixing the state’s multibillion-dollar deficit.<\/p>\n
In April, the Alaska House approved an income tax bill. One month later, the Senate killed it<\/a> in a 15-4 vote.<\/p>\n In this special session, Gov. Bill Walker has proposed<\/a> House Bill 4001<\/a>, a 1.5 percent payroll tax that would generate about $300 million to $325 million per year, according to estimates provided by the Alaska Department of Revenue.<\/p>\n Though that proposal is different from the one rejected by the Senate earlier this year, there’s no outward sign that the Senate Majority would vote any differently now than it did in May. Its members steadfastly believe that increased oil revenue, coupled with budget cuts and spending from the Permanent Fund, can erase the deficit.<\/p>\n