In the end... Failure to cap the PFD will result in those who DO end up paying an income tax paying double (or so) what they normally would, to generate the same revenues that would otherwise be offset from PFD proceeds. How is that "fair" to ask others to bear more of the costs of services (police, education, transportation) that we all use?

If anything, diverting PFD proceeds to provide broad government services is the epitome of fairness: taking something from "all" of us to provide for "all" of us - not trying to ensure a side payment by asking one group to contribute extra.