![]() |
President Obama's appointees aren't the only public figures facing uncomfortable questions about their income taxes. Some of Alaska's most powerful elected officials have had their own issues. Alaska U.S. Sen. Mark Begich gets credit for acknowledging that he has had to pay back taxes. As far as we know, he has corrected his returns and paid everything he owed. We still don't know why it took a city audit for him to realize that his use of a city-owned car constituted a taxable benefit, since it has long been understood in the private sector that any personal use of an employer-provided car is taxable.
The same issue has arisen with Gov. Sarah Palin, who drives a state-owned car. Her spokeswoman referred questions about the car to administration Commissioner Annette Kreitzer. In an e-mail to the Daily News Wednesday, Kreitzer said: "Any employees using State vehicles are either covered under the IRS commuter rule or are being taxed on the percentage of personal use of the vehicle. Governor Palin and all others using state vehicles are complying with these rules." We still don't know how Gov. Palin defines "personal use" and how much taxable benefit she derives from her state car. Recently, after months of questions, Gov. Palin has indicated she will pay income taxes on the state "travel" reimbursements she collects while staying at her home in Wasilla. She declines to say more than that. We still don't know how much back tax she accrued on this point, and what penalties and interest were incurred. The Daily News asked her office last week for updates on other tax questions but has yet to receive an answer. Alaskans don't know if she owes or has paid taxes on the clothes and grooming services she received during her vice-presidential campaign. Gov. Palin hasn't said whether she owes or has paid taxes on the thousands of dollars the state has spent flying her children to events. Her spokeswoman again referred questions to commissioner Kreitzer, who said the children's trips were official business, so the state does not treat them as taxable benefits. That interpretation runs contrary to several tax experts who were quoted in national media stories during Palin's vice-presidential campaign. Sen. Lisa Murkowski has stayed out of the crosshairs on personal tax questions by staying quiet. She has refused to say whether she has had to amend any past returns for underpaying taxes. Her silence is keeping her out of the headlines, but we still think she needs to be publicly accountable on this question. We think the same is true of U.S. Rep. Don Young as well. Public officials like Sens. Begich and Murkowksi, Rep. Young and Gov. Palin should undergo a degree of scrutiny most Alaskans wouldn't relish. There is no question that tax laws are complex. Anybody can make a mistake and owe back taxes without being guilty of deliberate misconduct. But these officials help determine the taxes we pay, so we are not asking too much to expect them to be promptly and fully accountable to the public about their tax situations. The best way to do that is for all high office holders to routinely release their recent tax returns, as Gov. Palin did during her national campaign. The point is not to play gotcha with elected officials over their tax situations. The point is to ensure that the officials who help make tax laws follow them scrupulously, just as ordinary citizens must. BOTTOM LINE: Still plenty of things Alaskans should know about the tax situations of their most powerful officials.