During this time last year, Alaskan businesses were considering the impacts of an upcoming minimum wage increase, but this year there are potentially larger changes coming.
While there will be another bump in minimum wage for Alaska on January 1, 2016, business owners are more concerned about the governor’s proposed tax revenues according to State Chamber of Commerce President Curtis Thayer.
Thayer: “You have the minimum wage obviously, but when you’re looking at anywhere from the fishing industry, tourism’s especially heavily hit, when you look at what you call the sin taxes, those are people in bars and restaurants and so that’s where a lot of our members are focused and we are now.”
Thayer says Alaskan businesses have never argued the need for a living wage for their employees but what’s concerning is the taxes that could potentially be added to that expense.
Thayer: “Our big concern is that you’re taking money out of the private sector to feed government. And what we would like to see as the Alaska State Chamber, is a reduction in the state budget to $4.5 billion to be sustainable, then look at the earnings of the Permanent Fund as well as other investments to help bridge that gap and that deficit and then as a very last resort have a conversation about taxes.”
He says the State Chamber of Commerce will continue working with Alaskan legislators to minimize impacts on what he calls “not exactly a stable business environment”.
Alaska’s minimum wage will increase to $9.75 per hour on January 1, 2016, and adjust to cost inflation thereafter.