Olson's proposal is silly. Why not just take 35% from the dividend amount before it is sent out? The PF Earnings and PFD programs need to be reformed anyway.

Seaton's idea is better but I wouldn't pay out any portion of the dividend in cash. Whatever is left after paying the income tax should go into an individual's tax-exempt trust account.

No matter what, the Legislature will need to tap the Earnings and/or CBR and/or reduce the dividend for about $3 billion this year. The dividend program cannot continue as a cash benefit if an income tax is instituted. Progressives need to drop their quest for this "holy grail" of theirs if they so badly want an income tax. 45% (estimated) of  Alaskans would pay ZERO income tax because they pay ZERO federal tax. That is a dividend too isn't it?