Anchorage's Money Problem: Time to Rethink Old Laws?

Anchorage is in a bit of a pickle. The city needs more money to cover things like schools, roads, and safety. But there's a law from way back in 1961 that stops Anchorage from taxing people's income. This law was made to keep income tax only at the state level. But times have changed, and Anchorage is struggling to make ends meet. Back in the day, when oil money was flowing, the state gave Anchorage a lot of cash. But those days are long gone. Now, Anchorage is getting barely any help from the state. The city tried to raise money by adding a sales tax, but people weren't happy. They said it was unfair because it hits low-income folks harder. Plus, the tax breaks for property owners would mostly help big businesses and out-of-state landlords.So, Anchorage had to get creative. They found a way to use a special bond to fund education for a year. But this isn't a long-term solution. The city still needs a lot more money to cover all its needs. Here's an idea: what if Anchorage could tax income? It's not a new idea. Over 170 cities in the U. S. already do it. Anchorage's total personal income is huge—$23 billion in 2023. A small tax of just 0. 5% could bring in $122 million. That's a lot of money for schools, roads, and other important things. But there's a catch. The state law still stands in the way. It's time for the state to step up and repeal this old law. Let Anchorage decide what's best for its people. Even if the city chooses not to tax income, at least they'll have the choice. It's about giving communities the power to take care of themselves.