Successfully reported this slideshow.
Your SlideShare is downloading. ×

Distributional Impact of Proposed PFDCuts on Alaska Families by Income Bracket (Supplement to 3.4.2021 LegFin Presentation to SFIN (3.7.2021))

Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad

Check these out next

1 of 7 Ad

Distributional Impact of Proposed PFDCuts on Alaska Families by Income Bracket (Supplement to 3.4.2021 LegFin Presentation to SFIN (3.7.2021))

Download to read offline

This presentation is to supplement the 3.4.2021 LegFin Presentation to the Senate Finance Committee to analyze the distributional impact by income bracket of the level of PFDcuts discussed there.

This presentation is to supplement the 3.4.2021 LegFin Presentation to the Senate Finance Committee to analyze the distributional impact by income bracket of the level of PFDcuts discussed there.

Advertisement
Advertisement

More Related Content

Similar to Distributional Impact of Proposed PFDCuts on Alaska Families by Income Bracket (Supplement to 3.4.2021 LegFin Presentation to SFIN (3.7.2021)) (20)

Advertisement

More from Brad Keithley (20)

Recently uploaded (20)

Advertisement

Distributional Impact of Proposed PFDCuts on Alaska Families by Income Bracket (Supplement to 3.4.2021 LegFin Presentation to SFIN (3.7.2021))

  1. 1. Distributional Impact of Proposed PFDCuts on Alaska Families by Income Bracket Supplement to 3.4.2021 LegFin Presentation to SFIN March 7, 2021
  2. 2. Why a Supplement 1. While LegFin’s 3.4.2021 Presentation to SFIN analyzed the impact on the overall budget of three sets of proposed PFDcuts, LegFin did not analyze the distributional impact of those cuts on Alaska families (the so-called #WhoPays issue) or the impact on the Alaska economy 2. The purpose of this supplement is to provide the distributional impact of the cuts on Alaska families (#WhoPays) 3. The impact of the cuts on the Alaska economy is in process applying the analysis included in the ISER’s March 2016 “Short-Run Economic Impacts of Alaska Fiscal Options”
  3. 3. Methodology 1. ITEP’s December 2020 Report, “Comparing Flat-Rate Income Tax Options for Alaska,” calculates the impact by income bracket for each $500 reduction in the PFD 2. This analysis uses the data from that report to calculate the impact by income bracket for two cases: a. The reduction from the Statutory PFD to POMV 50/50, $1000 PFD and $500 PFD (the reductions analyzed by LegFin), and b. The reduction from a POMV 50/50 PFD to $1000 PFD and $500 PFD 3. This analysis focuses on the anticipated FY 22 PFD, calculating the Statutory and POMV 50/50 PFD’s using data from the APFC’s January 2021 “History & Projections”
  4. 4. Conclusions 1. As all three of ISER’s 2016 and ITEP’s 2017 and 2020 reports make clear, using PFDcuts to balance the budget (compared to other types of supplemental revenue) disproportionately impacts middle and lower income Alaska families (i.e., are regressive) 2. This analysis confirms that, finding that PFD reductions of the levels analyzed in LegFin’s 3.4.2021 Presentation takes substantially more as a percent of income, from middle & lower income Alaska families than from upper income Alaska families 3. The differences are stark: in each case, using PFD reductions to balance the budget takes 10x more as a percent of income from the Lowest 20% of Alaska families than from the Top 20%

×