For Immediate Release: February 27th, 2013
Senate Adopts Wielechowski Amendment Providing Tax Relief to 14,000 Small Alaskan Businesses
JUNEAU – The Senate today adopted a provision that will free 14,000 of Alaska’s smallest businesses from having to pay any state income tax.
The provision, offered by Senator Wielechowski (D- Anchorage), exempts businesses with taxable income of less than $25,000 from paying Alaska’s corporate income tax.
“Many of these businesses are struggling to survive,” said Senator Wielechowski. “They need our help so they can grow and create more jobs for Alaskans.”
Collectively, these small businesses pay less than a half million a year – a small amount compared with the $6 billion generated last year from oil and gas production taxes.
“Small businesses are a critical part of our economy,” Senator Wielechowski added. “They employ 53% of our private-sector work force or about 69,000 Alaskans. They deserve our support and assistance, and today we took an important step forward in providing that assistance.”
Senator Wielechowski proposed a second amendment that would have simplified the corporate income tax structure and lowered taxes for most small and medium-sized Alaskan businesses.
Currently there are 10 income tax brackets, each with its own tax rate.
Senator Wielechowski’s proposal would have created just four brackets and lowered taxes rates for companies making less than $200,000.
The amendment failed on a 15-5 vote.
For more information, call Senator Wielechowski or Michelle Sydeman at 465-6881 or 321-1944.