Juneau -- After Governor Knowles' Income Tax Plan failed to pass the Senate Tuesday, Senate Finance leaders said Knowles' plan represents a different vision for the role of government in the 21st century compared to Republicans in the Senate Majority. Democrats joined Republicans to defeat Senate Bill 67 in a unanimous vote.

"Governor Knowles' Income Tax Plan to balance the state's budget imposes an income tax on a small segment of Alaskans. It adds bureaucracy and is vigorously opposed by most Alaskans," said Senator Sean Parnell (R-Anchorage), Co-Chair of the Senate Finance Committee.

"Governor Knowles' vision for balancing the budget is based on a tax and spend philosophy," said Senator John Torgerson (R-Kasilof), Co-Chair of the Senate Finance Committee. "Our vision starts with reining in government spending and does not burden Alaskans with an unfair tax."

"Governor Knowles' plan, although gutsy, does not balance Alaska's budget much longer than his term in office," said Torgerson who further explained that Governor Knowles' plan spends the new income tax money by 2012. His plan would also require the consideration of an additional tax or another draw on the Permanent Fund Earnings Reserve by 2016 to continue his vision of more government spending.

Governor Knowles' Income Tax Plan is one component of his overall long-term financial plan.

Parnell said the path to a balanced budget plan includes further budget reductions and spending limits. It should restructure programs and services to make government more efficient. It will instill government accountability by requiring agencies to set goals and achieve those goals to support continued state funding. And, it will use our state's financial and natural resource assets wisely to balance the budget.