There’s a plan in the works that would help bridge the state’s $2.8 billion annual deficit in three years. Alaskans would help pay for it.

It comes from the House Finance Committee, and it includes a cap on the PFD, higher taxes on oil and gas producers and implements an income tax.

Alaska hasn’t had an income tax since 1979.

Representative Paul Seaton is co-sponsoring House Bill 115. It reduces the PFD to $1,250 a year, and it creates a bracket for income tax based on individual and married couple’s income.

“It fixes the problem." said Rep. Seaton. "After three years, the deficit goes away."

To put it simply, the more you make, the more you have to pay up.

No individual has to pay, if they make less than $10,300. But if more than that is made in a year, 2.5 percent of an income will be taxed, until $50,000 and so forth. The highest bracket for an individual, who makes $250,000, is 7 percent.

If passed, Alaska’s income tax would be the fourth lowest in the country.

However, not everyone in the house agrees with the proposal. Opponents of the bill say Alaskans shouldn’t have to pay for state government.

“We offered up $300 million in reductions, and when you look at the income that would come from the income taxes is about $650 million,” said Rep. Cathy Tilton. “If some of those were accepted, that could have started to head towards that number.”

In favor of the bill, Rep. Seaton says, “I believe this will do it, and both the Department of Revenue and Legislative Finance models shows that this does do the job."

If HB 115 is passed, it would not go into effect until 2019.

The House Finance Committee will hold a public testimony on the bill on Wednesday, starting at 1 p.m.