Brett Huber: As tax season arrives, Working Families Tax Cuts bring relief to Alaska families and the truckers who keep the state moving

By BRETT HUBER

It’s tax season, and for many Alaskans this year, the numbers look different, and in a good way.

The Working Families Tax Cuts Act, signed into law on July 4, 2025, was designed to prevent a major tax increase by extending key provisions of the 2017 tax reforms signed by the first Trump Administration.

Americans for Prosperity worked hard on behalf of that tax cut bill and it’s bearing fruit as families begin filing their 2025 returns. The effects are clear: lower taxable income, larger deductions, and in many cases, more money staying in household budgets.

That makes a difference in Alaska, where the cost of groceries, fuel, housing, and transportation stretches paychecks more than almost anywhere else. The law permanently locks in lower individual tax rates and keeps the doubled standard deduction that more than 90% of taxpayers use.

It enhances the Child Tax Credit, expands child and dependent care relief, and eliminates federal taxes on tips, overtime, and Social Security benefits for many Americans. Seniors also receive a $6,000 deduction.

A typical family of four could see between $7,500 and $11,000 in annual tax relief or higher take-home pay. For many households filing returns right now, that translates into either smaller tax bills or larger refunds.

But in Alaska, one of the biggest stories this tax season involves the people who move nearly everything across the state: Our truckers.

From the Parks Highway to the Haul Road, from the ferry terminals to rural communities, Alaska’s trucking industry is the backbone of our supply chain. Independent owner-operators and small fleets move groceries, fuel, construction materials, and equipment across vast distances and difficult terrain. The Working Families Tax Cuts Act includes several provisions that directly help them and, by extension, every Alaska family.

One of the most significant changes is making the 100% bonus depreciation permanent, allowing trucking companies and owner-operators to deduct the full cost of trucks, trailers, and qualifying equipment in the year they are purchased. During tax season, that can dramatically reduce taxable income for operators who invested in new equipment last year.

For Alaska truckers, where a single rig can cost well into six figures and reliability is critical in extreme conditions, that deduction can mean the difference between delaying an upgrade and modernizing a fleet.

The expanded Qualified Business Income deduction also provides relief. Many Alaska truckers operate as sole proprietors, partnerships, or S-corporations. Increasing the deduction lowers their effective tax rate and allows small operators to keep more of what they earn. That’s money that often goes right back into equipment, hiring, and local spending.

Lower individual tax rates and the larger standard deduction also directly benefit drivers’ wages. As returns are filed this spring, many truckers and logistics workers are seeing the impact in real dollars.

The law lowers costs by addressing logistics and regulatory burdens that affect truckers and working families alike. One area involves easing regulatory pressure tied to vehicle standards that have historically driven up the cost of trucks and work vehicles. When the cost to manufacture trucks rises, those increases are passed directly to buyers, including contractors, small businesses, and owner-operator truckers across Alaska.

Reducing those regulatory burdens helps prevent price increases on the very vehicles that power Alaska’s economy.

Americans for Prosperity Alaska has long supported the reduction of regulatory burdens. Delays, redundant inspections, and outdated federal restrictions all add costs to shipping and those costs ultimately show up in higher prices for groceries, building materials, and consumer goods. Policies that streamline logistics and remove bottlenecks can increase the speed of freight movement, something especially important for Alaska, where shipping windows are tight and transportation costs are already high.

When freight moves faster and more efficiently, prices stabilize. When truckers can operate with fewer regulatory hurdles, costs drop. And when small operators keep more of their earnings, local economies benefit.

In Alaska, small businesses are working families. Owner-operators, family fleets, construction haulers, and fuel delivery drivers are the people who keep Alaska supplied and connected.

As tax season unfolds, the Working Families Tax Cuts Act is doing exactly what its name suggests: helping working families. It’s lowering tax bills, encouraging investment, and supporting industries that are vital to Alaska’s economy.

It’s showing up right now, on tax returns, in equipment purchases, and on store shelves across Alaska.

Brett Huber is state director for Americans for Prosperity-Alaska and is a longtime Alaskan.