Do you know how few out of state workers there are in Alaska?  Most of those work in the seafood processing and service industries.  Most do not make enough to pay income tax.  Further, less than 50% of Alaskan wage earners will earn enough to pay a state income tax.  The money generated from a state income tax is merely spit in the ocean and will do little to balance the budget.  But if you are into "sticking it to the man" then the income tax may be for you.