It seems to me the $150K cap is to keep the tax paid capped at PFD levels. That way, no one is paying any more than they are getting in PFD payments...unless they are a single-person household. Let's just keep it simple and end the PFD for good. There was a failed ballot initiative about 17 years or so ago that foresaw this day; it proposed to give us all a large one-time payout (~$25K at the time) and then end the dividend program. That sure would simplify this entire mess.