The once a year dividend, which is a return on investment of the Permanent Fund principal is a direct infusion of funds into the economy of Alaska by Alaskans.  Alaskans do not need the State to confiscate and redistribute the funds that are rightfully each individuals.  Exemptions, incentives, are always a good idea if there is a net gain for the State.  The State offers exemptions to keep people living and investing in the State.  Without those,  investment does not happen in Alaska but moves to a more favorable location.