Dunleavy's broken tax pledge collides with reality
Regarding his opposition to new taxes in Alaska, Mike Dunleavy said everything except “Read my lips.”
He made it clear for more than a decade that he opposed new taxes—a position he reversed last month.
He has just discovered that “Alaska's fiscal regime does not serve the state well.”
I’m still not sure where he stands on taxes because his so-called fiscal plan is packed with poison pills that will kill the sales tax and oil tax plans. Still, the plus side is that Republican candidates for state office will be unable to repeat the nonsense that Dunleavy relied on in 2018 and 2022.
So that everyone understands Dunleavy’s former claims, I have assembled documents from some of the occasions on which he said as a candidate and governor that we could have big dividends and no taxes.
In a press release published across the state under the headline, “Why I Stand Tall for Alaska,” Dunleavy said in March 2018 that he would “not impose new taxes without a vote of the people” and “not change the PFD without a vote of the people.”
“I will lead Alaska back to prosperity,” he said.
Here are 15 examples of Dunleavy in his own words opposing taxes:
March 11, 2016: “From my perspective, new broad-based taxes are not the answer. Winston Churchill once said “A nation trying to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” That rings as true today as it did when he said it over a hundred years ago. Just look at California or Illinois. Their response to revenue issues has been to increase taxes and user fees.”
January 9, 2017: “For those who say you cannot get out of this without taxes and reconfiguration of the Permanent Fund Dividend,” Dunleavy told the Frontiersman, “The mathematics has been checked by several people. You can get out of it — your cuts will be steeper, but you can get out of it.”
July 17, 2017: “I have put forth a plan that balances the budget over a period of four years with no new taxes and does not require any restructuring of the current PFD.”
May 13, 2018: “If the Legislature and the governor work together to do the hard work of tightening our belts, we will not only get through this slump but also will grow our economy, create new wealth, new jobs and new revenue without taxing hard-working Alaskans or taking their PFDs.”
Summer 2018: Dunleavy support group said, “Alaska’s budget problems are primarily due to a bloated state budget. Alaska’s state government spends more money per capita than any other state. As Senator, Mike Dunleavy proposed a balanced budget solution that doesn’t require new taxes or raiding the People’s Permanent Fund Dividend.”
July 20, 2018: “It is possible to balance the budget without a tidal wave of new taxes or reduced Permanent Fund dividend checks in the next few years — if we have the smarts to focus on things that will work.
”I should know. I spent years in Juneau as a state senator, serving on the Finance Committee. While some progress was made in controlling state spending, it's also true that many opportunities for more meaningful reductions were passed over due to fierce opposition from entrenched special interests.”
September 29, 2018: “With the right leadership and policies in place, we can resolve the budget deficit without PFD cuts and new taxes. If we control state spending and maintain a competitive, stable business climate, Alaska will grow its way out of the deficit.”
“As governor, I will set out to reduce the state's budget as an act of policy. My commissioners will be instructed to find savings, but only in practical ways.”
February 12, 2019: ”Based on the will of the people and a sincere belief that we can't tax our way out of these fiscal challenges, my budget proposes no new revenues from Alaskans. While some wish to ignore Alaskans and propose billion-dollar taxes and PFD grabs to close our financial gap, I've made clear that this is out of line with the core beliefs of most Alaskans and the promises I made on the campaign trail.”
March 30, 2019: “My campaign commitment was no taxes and that was from a statewide perspective. What they do at the local level — and I live in a municipality up in Mat-Su — that's a discussion for those folks at the local level.”
February 23, 2021: “I am not going to support new revenues. I’m not going to support the taking of money from Alaskans unless they have an opportunity to vote on their constitutional amendment.”
June 17, 2021: He said his plan to put the dividend in the Constitution “requires no hit to the Permanent Fund’s core savings account and will balance our budget within five years without broad-based taxes.”
August 13, 2021: “But, I'm not going to be excited about putting revenue into place unless there is a constitutional amendment that accompanies that. I believe that we need to protect the people from an overreaching government that will want to spend more than we take in.”
September 8, 2022: “There were many conversations about what an appropriate level to tax would be, but ultimately a tax increase on the people of Alaska is not something I can support.”
October 6, 2022: When asked by a news organization, “Would you consider new taxes as part of a complete balanced budget plan?” Dunleavy replied, “No. The budget is balanced, and any new taxes should be subject to approval by the people.”
January 19, 2023: “I ran for governor twice on a pledge to monetize our shared resources before I will consider asking Alaskans to bear any financial burden from a reduced PFD or new taxes. This includes our immense carbon management resources. That's a pledge I intend to keep.”
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