Federal Tax Ban on the PFD
The Permanent Fund Dividend is a financial benefit and right to the Alaskan people. Our State's natural resources is one of our most precious commodities as the rest of the nation also benefits from them. The unique geographical disposition of the Alaskan people makes it financially and logistically difficult to get much needed supplies and resources from the lower 48-states and from around the world. Import costs are high, product prices are as high as more populated states such as California and New York, however accessibility is much easier for them than Alaskans. Once a year, our residents have the opportunity to recompense some of the loss in revenue and income to support their families and local businesses. The PFD is that vehicle for most of Alaskans and it is not right that that income is counted against them towards their household income on federal tax returns. A family of four - with two working parents stand the propensity to be projected into the next tax bracket and pay higher taxes when the PFD is factored in. This causes some families to forego obtaining the PFD that could otherwise assist their families in times of economic hardship. That is why I will be proposing a ban on federally taxing the Permanent Fund Dividend for Alaskan residents to ensure a viable financial safety net during and in the event of financial hardship. COVID-19 has made a significant impact on the Alaskan economy and most small businesses are permanently closed due to the economic shutdown and cessation of the travel industry. It is a common sense approach to provide financial protection to Alaskans and shield them from economic constraints that are no fault of their own.