The Overlooked Tax Breaks in the Democrats’ Affordability Argument
By ALEX GIMARC Oct. 28, 2026 – Supporters of Mary Peltola and Bill Hill often criticize the Trump Administration for rising costs in Alaska, primarily citing increased fuel prices due to the Iranian conflict and escalating healthcare expenses from the end of Obamacare subsidies.
By ALEX GIMARC
Oct. 28, 2026 – Supporters of Mary Peltola and Bill Hill often criticize the Trump Administration for rising costs in Alaska, primarily citing increased fuel prices due to the Iranian conflict and escalating healthcare expenses from the end of Obamacare subsidies. However, they neglect to mention the significant tax cuts enacted last year under the One Big Beautiful Bill, passed on July 4, 2025, which could benefit many workers.
This legislation included three major tax reductions: no taxes on tips, which could save around $1,300 a year; no taxes on overtime, estimated between $1,000 and $1,850 yearly; and a provision eliminating taxes on Social Security payments, benefitting seniors by approximately $3,000 annually. These cuts received only Republican support and are set to expire in December 2028, yet Peltola and Hill do not address these in their campaign messaging.
While Democrats highlight cost increases, they overlook that the cumulative cost of the tax cuts far exceeds the claimed increases, leading to a potential annual saving of over $6,100 compared to a possible $3,300 from rising expenses. Alaskans must decide whether to preserve their savings or accept blame-shifting from the Democrats.
Comments
Randall C Frank 2026-10-30
My wife and I are retired so we do not have to do as much daily driving as someone who commutes to and from a job every day burning gasoline. We do most of our shopping for food and other items at either one of our two Fred Meyers stores in Fairbanks. We earn Fred’s gas points of 1 point per dollar spent on every purchase which lowers the cost of each gallon. My wife does not drive anymore so all the driving is done by me. I have not paid full price on a gallon of gasoline in years and this year I usually get $1.00 off per gallon regularly. So, while the price of everything is going up, for us it is somewhat offset by using Fred’s gas points system.
Steve-O 2026-10-29
The refinery in Nikiski is still there.
John in Alaska 2026-10-29
Damien, Alaska used to have 4 refineries, but are now down to 2. 1 in North Pole the other in Valdez. The Tesoro in North Pole supplies the military bases, JBER, Eielson, FWA, FGA and Clear, with fuel/petroleum products. The 1 in Valdez produces so little, it barely counts as a refinery. Maybe Alaska should get 2 brand new refineries built, 1 in the interior and 1 back on Kenai. UA professors have spewed non sense about how it is much more efficient and cost effective to send unrefined crude to Seattle and have it shipped back up to AK, wow, college faculty/staff spewing such nonsense. Yes, it would take 5 – 10 years of construction, plus dollars (that the PFD fund could finance) producing more output of fuels/petroleum products and bringing in more revenue to the state, thru employing workers for construction of refineries and employees working these refineries, and the sale of petroleum products outside of Alaska, and at a lower cost to Alaskans!!!!!
Steve-O 2026-10-28
Add to that the fact that inflation under Trump is less than half the rate it was under Biden at the same point and most Americans have more spending power today than they did two years ago.
Democrats made the “affordability crisis” and they offer no plan but to continue it, yet for some reason they are going to take both seats of Congress?
agimarc 2026-10-28
Which ones are doing scheduled maintenance, Damien? Better yet, why does that matter? Note that scheduled maintenance is always folded into the annual production numbers and are PART OF annual production capacity. You don’t do this a lot, do you? Cheers –
Damien* 2026-10-28
Thanks A.G. Good comments. I believe that several, if not most, refineries are also performing annual maintenance, which naturally reduces production capacity.