Anchorage, Alaska has the lowest taxes in America, so why is their spending pressure through the roof?
Date Published
Anchorage, Alaska has garnered attention, and possible envy, from fellow American residents for having the lowest taxes in the country. This is due to Alaska, along with 8 other states**, not issuing any income tax. The Alaskan government believes the absence of income tax improves the quality of life of its residents by influencing them to consume and spend more in day-to-day life. They also take the stance that having a lower tax burden is advantageous to Alaska’s economic growth. StatisNostics proves otherwise.
Despite having incredibly low taxes, Anchorage, Alaska has a very high spending pressure score of 98 out of 100. The public services provided by spending are not making up for the amount of taxes the residents of Anchorage are paying. Due to this, the people of Anchorage are susceptible to net loss in property value as well as debt. The Anchorage government spends about $36,000 per citizen every year. Despite their beliefs that a lower tax burden will stimulate economic growth, the annual debt burden in Anchorage is over $86,000 per person.
If you want to know if you fall victim to high spending pressure, visit www.statisnostics.com to find the spending pressure score for your city/town. By entering your address in the search bar, the StatisNostics database will provide you with information on your town’s economic data, government, real estate, schools, public safety, health, demographics, and climate.
**New Hampshire, Tennessee, Florida, Wyoming, South Dakota, Nevada, Texas and Washington
1. Carolyn Grindrod | The Center Square contributor. “Report: Alaska Has Lowest Tax Burden of Any State.” The Center Square, 4 Apr. 2023, www.thecentersquare.com/alaska/article_686a84c2-d274-11ed-98cc-cf5d4ee5252b.html.
2. Probasco, Jim. “9 States with No Income Tax.” Investopedia, Investopedia, www.investopedia.com/financial-edge/0210/7-states-with-no-income-tax.aspx#:~:text=As%20of%202023%2C%20Alaska%2C%20Florida,tax%20on%20certain%20high%20earners. Accessed 10 Jan. 2024.