I think Mustread gets it wrong on this. Have you considered that seasonal workers and out-of-state workers in industries like tourism, oil and fish processing would be subject to an income tax while not receiving a PFD? In effect, the income tax is a way to capture some revenue from people who use state services but do not contribute. It captures a portion of income from non-residents while preserving the PFD for all Alaskans. It's also a better way to share the burden of services without skimming off the PFD which has a huge multiplier effect in the local economy.