"The beauty of eliminating the Dividend is that for the first time we will actually be taxing the income of all workers including out of state residents."
I've questioned your leaps of logic in the past so I don't expect much here but... How do out of state residents participate in any tax by eliminating the dividend?  It isn't like there is any legal, moral or logistical barrier to enacting an income or school tax until the dividend is eliminated.