Details of Gov. Tony Knowles’ proposed state income tax

The Associated Press

THE TAX — Alaskans would pay 31 percent of their federal tax liability, generating about $350 million a year, according to Department of Revenue estimates.

THE CREDIT — Each Alaskan who qualified for the Alaska Permanent Fund dividend would receive a $500 credit, about the amount of federal income tax on the dividend.

WHO PAYS — Single people, childless couples and the wealthy would pay the most, along with nonresidents who would not qualify for the credit. Because the tax echoes the graduated federal tax rate, those making more than $100,000 would account for $195 million, more than half the total taxes collected.

WHO WOULDN’T PAY — The $500 credit favors large families of relatively modest means. A resident family of four with less than $60,000 of income would pay nothing.