Eliminate corporate income tax in Alaska

Alaska’s tax system is in dire need of reform; the state’s efforts to adjust its corporate tax brackets acknowledge the fact that corporate income taxes can have a negative effect on Alaska’s economy (“Corporate tax bill passes state Senate” Mar 2). Corporate income taxes are considered by many economists to be the most destructive tax, stunting economic growth by taking dollars out of the hands of businesses and stifling production, innovation, and risk-taking, the main factors driving economic growth.


While improving the current corporate tax system is a positive development in the short run, the state should consider moving towards a tax system that eliminates the corporate income tax. States across the country have begun moving towards lowering or eliminating all or part of their income taxes in order to spur economic growth; since 2007 ten states have lowered their income tax rates, and several other states are considering similar changes this year. The states that have taken steps to lower their income tax burden have seen dramatic economic improvement, with population and job growth.

Matthew Glans

Senior Policy Analyst

The Heartland Institute

Chicago, Ill.


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