This is an open appeal to Senator Matt Claman from his constituents across his district to support Senate Bill 92, which would close a tax loophole that exempts S corporations (including Hilcorp) from state corporate income taxes. Our state and our district desperately need revenue, now more than ever – especially as drops in oil prices and federal divestment loom.
SB 92 does not solve the entire budget problem by itself, but it is the most sensible and sizable first step for the state to raise revenue. This legislation also addresses a glaring inequality in our tax system. Why should Hilcorp get a pass from paying state income taxes to Alaska while Chevron and Exxon are paying their share?
It is hard to understand how Senator Claman could fail to support SB 92 if he were voting with his current constituents’ interests in mind. While reducing the budget deficit benefits the entire state, West Anchorage’s constituents want the revenue deficit addressed in order to fund basic public services, especially education. People across our district want to see middle school sports, choir, and arts survive this budget cycle.
We want smaller class sizes. My grandson’s 2nd grade classroom has 29 students, and this is untenable if we want kids to learn and graduate. People in West Anchorage want to see early childhood invested in via childcare grants and services for infants and toddlers. As a nurse midwife, I have helped thousands of Alaskan families who need well-funded services for children to be able to stay in Alaska. I have seen countless families from my practice leave the state because these services remain vastly under-resourced. For these things, and to meet Alaska’s constitutional requirement to fund public education, we need revenue.
It’s an open secret that Senator Claman has an eye towards statewide office. We hope Senator Claman is not trading the needs of his current constituents for a possible future electorate. Additionally, while an uncompromising platform of no new taxes may seem to offer consistency if running for higher office or, as Senator Claman says, running in the Sand Lake part of his district, it may prove extremely difficult to defend voting against closing this blatant tax loophole during a statewide budget crisis. If this vote is a product of political calculations, it is coming at the expense of the constituents who already voted him into office. We are here to make the message loud and clear:
Senator Claman, your West Anchorage constituents, from Sand Lake to Turnagain, support closing this loophole and bringing needed revenue into the state. We are not asking you to tank your political career; we are only asking that you be as courageous as Senator Giessel and Senator Kawasaki who, arguably, live in districts where supporting a tax on an oil company is much more politically risky than in ours. We are only asking that you vote with the Majority Coalition that you agreed to be a part of. We are only asking that you prioritize the well-being of Alaskan families over the wealth of one billionaire in Texas who avoids paying corporate income taxes in Alaska for resources he extracts here, or over promises made to wealthy political donors.
Barbara Norton
Barbara Norton, CNM, ANP, is a longtime Anchorage resident and business owner, mother and grandmother, and women’s healthcare provider. Barbara is a constituent of Senator Claman’s.