I am unclear how 6% of a person's federal income tax rate in state income tax would crush a family of four.  If they are so poor they are not paying federal tax, then they won't be paying the state income tax either.  The rest of us will pay that part, which isn't fun, but it is nice that it gets offset to some extent from our federal income tax as a write-off.  For some reason, the federal tax payers have subsidized states that have a state income tax for years.  At some point Alaskans will have to pay at least some part of their state obligation instead of pushing it onto the oil companies.  I much prefer a progressive tax, even though it hits me harder than most Alaskans.  I am in a better position to pay it.

Clearly the PFD will be decreased, which is regressive, but I have not heard any proposal that doesn't do that.

In the long run, the State has to pay for its obligations.  Those are obligations we have requested as voters.  Now the check is due.