Bill Overview
Title: A bill to treat activities related to fisheries in the Bering Sea and Aleutian Islands areas as related to an exempt purpose for purposes of the Internal Revenue Code of 1986.
Description: This bill treats certain activities (e.g., harvesting, processing, transportation, sales, and marketing of fish and fish products) that are substantially related to participation or investment in fisheries in areas of the Bering Sea and Aleutian Islands as related to an exempt purpose and thus exempt from taxation.
Sponsors: Sen. Murkowski, Lisa [R-AK]
Target Audience
Population: People involved in the Bering Sea and Aleutian Islands fisheries
Estimated Size: 50000
- The Bering Sea and Aleutian Islands are significant fishing regions, particularly for species like cod, pollock, and crab.
- Commercial fishing operations, including companies and individuals involved in this industry, will be directly impacted as they will benefit from taxation exemptions.
- Workers in the fishing industry, including harvesters and processors, may see indirect benefits from increased profitability for companies.
- Supporting industries such as transportation and marketing businesses involved with fish products from these regions will be impacted.
- Communities and local economies in Alaska dependent on the fishing industry in the Bering Sea and Aleutian Islands will experience the effects of any economic changes resulting from tax exemptions.
Reasoning
- The target population includes Americans involved in the Bering Sea and Aleutian Islands fisheries, particularly those in Alaska.
- The policy aims to provide tax exemptions to businesses in fishing and related sectors, increasing profitability. This might improve financial stability and job security for involved workers.
- Not everyone in the community may be directly affected; some workers or residents might not see changes in their daily lives.
- The size of the budget over ten years is significant enough to reach many but not all individuals in the target areas.
- Perceived wellbeing improvements reflect both direct economic gains and indirect benefits in community wellbeing.
Simulated Interviews
Fisherman for a commercial cod fishing company (Anchorage, Alaska)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- The tax exemption could help my company save a lot, possibly leading to higher wages or more stable employment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Fish processing plant manager (Juneau, Alaska)
Age: 45 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- If the business saves money on taxes, we might be able to invest in better equipment or training for workers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Fish processing worker (Sitka, Alaska)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I hope this means more stable hours or even a pay raise, which would help me save for school.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Logistics coordinator for seafood exports (Seattle, Washington)
Age: 52 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This could increase demand for shipping services which might strengthen our business ties with Alaskan firms.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Owner of a small seafood restaurant (Ketchikan, Alaska)
Age: 39 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- If local fish prices drop because of tax savings, I could lower prices or increase margins.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Marketing specialist for a seafood brand (Fairbanks, Alaska)
Age: 28 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Increased profitability leads to higher marketing budgets, so I see growth opportunities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Retired, formerly worked in a fish hatchery (Unalaska, Alaska)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- I wonder if this policy might indirectly improve local public services through economic growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Dockworker (Dutch Harbor, Alaska)
Age: 33 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Tax exemptions for our companies might boost our workload, meaning more job stability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Environmental NGO worker (Portland, Oregon)
Age: 42 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- I'm concerned about encouraging expansion without strict sustainability guidelines.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Fishery compliance officer (Anchorage, Alaska)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I'll have to ensure everyone's following the new rules, so I don't see changes in my role, but positive economic effects could impact the community.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $20000000 (Low: $15000000, High: $25000000)
Year 2: $20500000 (Low: $15500000, High: $25500000)
Year 3: $21000000 (Low: $16000000, High: $26000000)
Year 5: $22000000 (Low: $17000000, High: $27000000)
Year 10: $25000000 (Low: $20000000, High: $30000000)
Year 100: $50000000 (Low: $40000000, High: $60000000)
Key Considerations
- Impact on local Alaskan economies dependent on the fishing industry.
- Potential legal and administrative challenges in defining and enforcing tax exemption criteria.
- Uncertainty in predicting the scale of increased economic activity resulting from the policy.
- Potential shifts in investment towards the exempted activities at the expense of others.