Fox News– The plunge in oil prices has given a needed break to drivers this holiday season, but it’s causing some real pain in states that rely on oil revenue to fuel their economies and shore up their budgets.
Perhaps nowhere is the impact more pronounced than in Alaska, where Gov. Bill Walker is proposing a raft of new taxes, including the first personal income tax in over three decades, along with budget cuts to offset the damage from the price drop for the oil-reliant state.
“This is a major paradigm shift in how the state of Alaska conducts business,” Walker said in a statement as he announced the plan in December. “That’s because we cannot continue with business as usual and live solely off of our natural resource revenues.”