Dear Editor: Alaskans remain disadvantaged. We are subject to what Alaska Rep. Kevin McCabe has aptly titled a hidden tax; i.e., what we pay for the impacts of the Jones Act (Section 27 of the Merchant Marine Act of 1920) on our cost of living and lack of purchasing power. Let’s assign another nickname; the Territory Tax, since being a state does not distinguish Alaska, and Hawaii, from the U.S. territories. Alaska and Hawaii are not receiving equal access to economic opportunities as other states because of the Territory Tax.
Alaska also faces another Territory Tax that receives little attention. Last November the Anchorage port manager released projections of estimated future costs to individual consumer items (the cost of milk, beans, and gasoline) associated with Anchorage port improvements. Among them: dredging. A sibling of the Jones Act is the Foreign Dredge Act of 1906. European countries such as Belgium have dredging capabilities vastly greater than our own, but this outdated law prevents them from operating in the United States. 95% of Alaska’s freight passes through Anchorage.
Lacking the comprehensive transportation networks similar to the lower 48 states, Alaska remains dependent on maritime transportation. Removal of the Territory Taxes will be one of the best economic rewards for Alaska, Hawaii and the territories of Guam and Puerto Rico could ever receive. Maritime unions and the shipping monopolies have and will do everything they can to prevent repeal. The average resident is programed to accept the hidden costs because there appears no choice.
The Territory mentality remains when powers within and outside the state adopt the model of work and leave. How many decades have elected officials promised to reduce Alaska’s cost of living? More than four decades for me. Inform our Federal and state officials you want an end to our Territory treatment.
Bradley Shaffer, retired CPA, Sitka
