Alaska doesn't have a state income or sales tax. Back when oil was discovered and the population was only about 200 K, they took the windfall profits and invested them in the stock market - mostly in oil and other industries that directly benefited the state. Blue chip stocks. The dividends from those investments are used to run the state. A separate smaller fund was set up to pay dividends directly to state residents. Every year at dividend time (right now as a matter of fact) you see wharrgarble about the government or the oil companies sending money to Alaskans, but of course they don't. That money is all dividends paid to stockholders from an investment portfolio owned by residents and administered by the state. I love capitalism! Would I give up my citizenship if I was double taxed living in another country? I suppose I would. I don't make enough to afford a double income tax.