Every financial year Alaskans receive their fair share of tax refunds worth an average of USD$1,100. To make the deal sweeter, there are no strings attached to this reward from the government.
This “tax refunds” are unique and have been remitted to the Alaskans for decades even when the state was facing financial stress.
In fact, there is no public finance rule which makes giving of the refund illegal. To the contrary, the residents are very happy about the “tax refund.”
Alaska must be a very good state to stay considering that you won’t be paying income and sales tax. Reason: they do not exist. Elsewhere, the two taxes are the leading sources of revenue for many government.
Imagine Kenya without an income tax. Not now, maybe once the country starts exporting oil from Turkana. Maybe.
The state of Alaska is required to consult the voters before expanding on state revenue of expenditure. This has an effect of creating a constraint on spending growth. This is called Tax and Expenditure Limits (TELs), a concept which should be adopted in Kenya to ensure the government avoids continuous expansion in terms of expenditure.
Tax and Expenditure Limits (TELs) will help Kenya contain the ever widening budget deficit and subsequently building a mountain of debt.
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