Cut the bloated state government spending first, including the overly generous public union pay and benefits.  Then cut or eliminate the PFD, the ultimate Alaska entitlement.  Use 4% of the permanent fund to pay for a much smaller state government.  Once you have done all that, institute a state sales tax.  After all we do not want to punish workers with another progressive income tax, after all, we want to encourage work, not discourage work.