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Public Statements

Bill to End Automatic Payroll Tax Increase

Statement

By:
Date:
Location: Juneau, AK

Governor Sean Parnell today urged the Legislature to pass Senate Bill 25 and House Bill 76, legislation to allow for the suspension of Unemployment Insurance (UI) tax increases when the Alaska UI Fund is deemed solvent.

"There's no reason for the State to stockpile Alaskans' money," Governor Parnell said. "Even when the Alaska UI Fund is solvent, current law requires continued contributions from Alaskans and their employers for payroll taxes. With the federal government continuing to increase taxes, the State of Alaska must lead the way and ensure Alaskans are keeping their hard-earned dollars. Our legislation helps minimize Alaskans' tax burden and allows Alaskans to keep more of their hard-earned paychecks."

Current law requires tax collections from employers and employees, even if the UI Trust Fund is solvent. As of March 15, the Alaska Unemployment Insurance Trust Fund had a balance of $257 million.


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