Percent of market value approach, income tax would solve problem

Posted: Friday, February 13, 2004

This year the Alaska Permanent Fund Corporation will receive a projected $300 million to add to the $27.5 billion principal of the fund. This is a constitutional requirement.

If we change things so the entire tax on oil, minerals, etc. were to go to the general fund, our budget shortcomings could be at least partly fixed.

This would not kill the Alaska goose which lays our golden egg each year. The managers have done a splendid job during some very difficult times. Adopting the percent of market value, or POMV, approach and earmarking the proceeds to be used as dividend payments would be a boon for all Alaska.

There would still be a shortfall of funds to adequately fund state government if schools, public safety and aid to rural folks were paid for. This should be made up by an income tax.

This would not, and could not, be done in Fairbanks. It could be done in Juneau with the right people there.

Dillon R Kimple, Sterling

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