I agree with "Last Patriot's" comment below.  I don't care how you spin it, it's still a tax because it's based on income and it reduces your paycheck.  Take my PFD and just don't tax me.  It doesn't pass the common sense test to give me an $1100 PFD and then take $2200 of my income.  All the PFD really does at this point is mess up my Federal taxes anyway, so just eliminate the PFD entirely and leave the money I work for alone.  Please.