Governor Says It’s Time To End the Secret Tax

According to statistics from the Governor’s office, most Alaskans paid around $927 for unemployment insurance over the last five years. He’s now introduced legislation which would end the automatic increases in that tax, so that when the Unemployment Insurance Fund is solvent, employees and employers will get a break.


The Unemployment Trust Fund covers payments to the unemployed, and Governor Parnell said “the Fund must be solvent, so it can make those payments, [but] there is no reason for it to be bloated with more funds than needed, especially since roughly one quarter of those dollars come from Alaskans’ paychecks and the other three-quarters are paid by Alaska’s businesses.”


While employees have contributed to the Fund, it’s employers who’ve been most impacted, with Gov. Parnell saying Alaska businesses paid $2,792 for most employees over the last five years.


The Governor’s bills, Senate Bill 25 and House Bill 76, would stop automatic increases, while still giving Alaskan businesses a federal tax credit for their contributions.

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