While I agree with you, you would only get about 1/3 of it, because it would be federally taxed at about 37% for most Alaskans. One of the many reasons I'd much rather see a 100% pfd payout (annual or outright) and see a state income tax with sales tax to cover the budget gap. See sales tax, income tax, propert tax are all deductible from your federal taxes. Ie more of your federal dollars stay here in Alaska, instead of going to Washington. The pfd would basically offset the state taxes, and you'd get a deduction from your federal taxes. It would be like living anywhere else in the US except it's offset by the pfd. I'd be all for this, so long as a spending cap were created and the tax rates were adjusted to decrease / go away when the reserve is at a surplus. Ie 90 day reserve is maintained. Right now we have a 3 year reserve (significantly the highest in the US). Including state & muni taxes, we have the lowest tax burden in the US.