However, this wasn't always the case. Back in 1949, while it was still technically a territory, Alaska levied an income tax equal to 10% of a person's federal income tax liability — a number that jumped to 16% by 1961. But in 1980, a few years after the Trans-Alaska Pipeline brought billions of dollars in revenue to the state, Alaska eliminated its personal income tax altogether. While there's still no individual income tax today, there is a graduated corporate income tax that can reach as high as 9.4%, though that only applies to profits made by larger businesses.
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