Letters to the Editor

Letter: Bring back the business receipts tax

It is evident that money is being made in Alaska and sent to the Lower 48 and other parts of the world with little benefit to the state, as can be seen in the commercial fishing industry. One way to help correct some of this out-go from fishing and other businesses is to reinstate the business gross receipts tax. Then some of the money being taken out of Alaska by non-regular corporations — known as C corporations — would help pay for government services.

In the 1970s, we had a gross business receipts tax that was 1%. With today’s computers it is easy to compute, regulate and collect with little increase in overhead. Regular corporations operating in Alaska pay up to 9.4% of Alaska profits in state income tax, while all other businesses pay no or little money into the state. All individual businesses, LLC, Sub S corporations, partnerships, and even those businesses operating under the nonprofit statutes of Alaska should pay into the state. A gross receipts tax of 1% would be a help.

— Clifford L. Davidson

Anchorage

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