Since clearly the economy is not McCain's strength (especially since his former advisor Graham is the father of both the sub-prime market crisis and out-of-control speculation in the energy market) can we put the conversations of Palin's family crises on hold to look at a few facts on Alaska's economy?
What many readers might not realize is that Alaska is one of the country's biggest welfare state in the nation.
I think this is a relevant discussion for someone who could be a heartbeat away from running the nation's economy.
Follow me below the fold...
Is Alaska a welfare state?:
Simply put, Alaska has made a habit of transferring its operating costs to the federal government. The state pulls out nearly two times as much money as it pitches in to the Treasury, a drain that looks especially bad in light of the state's fiscal reality. Today, Alaska enjoys a healthy budget surplus, and it sits on a Permanent Fund of more than $39 billion. It also refuses to levy sales or income taxes on its citizens.
First of all, let me state that I am not an expert in either Alaska or economics. I'm just a concerned citizen who wants this dialogue. I also have nothing against Alaska, having visited there twice. Gorgeous state, great people. I'm just not sure running the state gives any executive experience that those of us in non-super-subsidized world face. Consider the following:
- Alaska receives nearly twice as much federal dollars than they contribute to federal income, making it one of the largest beneficiary states. They receive the highest per capita federal dollars and 3rd highest total fed dollars.
Alaska taxpayers receive more federal funding per dollar of federal taxes paid compared to the average state. Per dollar of Federal tax collected in 2005, Alaska citizens received approximately $1.84 in the way of federal spending. This ranks the state 3rd highest nationally and represents a large rise from 1995 when Alaska received $1.21 per dollar of taxes in federal spending (then ranked at 17th highest nationally).
[for the record, my state ranks #1 in per capita federal tax dollars contributed and 37th in percapita dollars received gcontributing jsut under twice as much as we take. That makes (blue) NJ one of the generous sponsors of states like AK who hate taxes as long as they aren't someone else's]
- Alaska receives $13,950 per capital in federal dollars, the #1 state in the country in per capita fed spending dollars received.
- Alaskans pay no state taxes.
- Alaska has consistently had one of the lowest rates of state/local taxes Estimated now at 6.4% of income, Alaska's state/local tax burden is well below the national average of 9.7%. Alaskans pay $2,871 per capita in state and local taxes. They are ranked 50th--the lowest state/local tax burden in the country. Wouldn't want to burden local residents with investing in local infrastructure, right?
- BIG OIL and the Alaska government pay off its residents to love them. Are you aware of the Alaska Permanent Fund? This $40 billion fund from oil revenues had an individual payout in 2007 of $1654. That is $1654 for residents to keep their love of oil flowing. No wonder Palin wants to drill, drill, drill.
- Palin's own Wasilla received $27 million in earmarks under Palin to pay for things like a community center and sewer system repairs that, in a state like mine at least, is paid for locally with....taxes. As is often said, "Taxes are what we pay for civilized society"
In sum, I believe that the economics of Alaska are just simply different, and I think a discussion of these differences is absolutely relevant when we talk about who is qualified to lead this country and its economy. Given that this is McCain's weakeness, he did nothing to strenthen himself with his VP pick.
Is Palin's "executive experience" even remotely similar to the political leaders in the rest of the country? And while taxpayers in states NJ (where I live) foot the bill, Republicans like those who have had a monopoly on power in Alaska continue their mantra of "no more taxes, no more taxes", while they are firmly on the dole.
What do you think?