Alaska Progress Report

CBPP says Alaska business taxes too low

From the tax-lovin' folks at the Center for Budget & Policy Priorities comes a recommendation for Alaska and 18 other states that "...impose only nominal taxes on businesses organized as subchapter S Corporations (S-Corps) or Limited Liability Companies (LLCs) even though these entities — which generate about one-fourth of all business receipts — benefit from state services just as businesses that are subject to state corporate income taxes do.

"States impose taxes and fees on S-Corps and LLCs because these entities receive substantial benefits from state and local government services.  Most obviously, states provide significant concrete benefits to all for-profit enterprises, including S-Corps and LLCs.  States substantially finance K-12 and higher education systems, which furnish businesses with a productive workforce.  They maintain a legal and regulatory system that enforces business contracts and discourages commercial fraud.  They provide public transportation networks that enable businesses to obtain inputs and get their products to market.  Since S-Corps and LLCs benefit at the entity level from these services, they should share the responsibility of financing them."

I'm staying out of this one...

Anchorage businesses anticipate growth

From the Anchorage Economic Development Corporation: "In its first ever Business Confidence Index, the Anchorage Economic Development Corporation gauged the perceptions of Anchorage professionals on the local economy and how businesses will respond in 2009. In the face of a national recession, the results reveal a cautiously optimistic mindset among Anchorage business leaders. Respondents forecast small increases in several aspects of their own business or organizational activity. Key findings: 

• When asked about business performance in 2008, 60 percent report some increase in profits with an additional 11 percent reporting 2008 as a flat year.
• Going into 2009, more than half the businesses (55 percent) expect an increase in terms of gross sales.
• In 2009, 45 percent of businesses anticipate an increase in net profits while 14 percent expect no change.
• Energy prices and the availability of professional and technical workers are considered the two most significant barriers to growth, with 63 percent rating energy prices and 62 percent rating the availability of skilled employees as significant or moderate barriers.
• 97 percent of businesses responded that a natural gas pipeline from North Slope to Southcentral is an important project for the Anchorage economy, 78 percent replied "very important."

"More than 100 businesses completed the survey, representing a broad cross-section of the Anchorage business community in terms of size and business sector."