I am writing to address recent claims suggesting that candidate for Senate Ben Carpenter is in favor of a 2% state sales tax. This assertion is misleading and does not accurately reflect his position. Rep. Carpenter wants Alaska to have an operational fiscal plan.
First, it is important to clarify that Carpenter introduced a bill proposing a 2% state sales tax as part of a broader fiscal reform package aimed at addressing our long-term financial challenges. This proposal is not an endorsement of the sales tax in isolation, but rather a component of a comprehensive strategy to balance state spending and revenue.
In his sponsor statement, Carpenter emphasized that the proposed sales tax is designed to be part of a structural reform package, modeled after South Dakota’s sales tax system. He highlighted the importance of a broad-based system that keeps rates low, simplifies compliance, and minimizes economic distortions.
This approach aims to maintain Alaska’s ranking as one of the lowest combined state and local sales tax rates in the nation.