I believe the states in red should collect all taxes, both federal, state and local, keep what is needed to provide the services for its people, and send any leftovers on to Washington, DC.
Make allowances for any unfunded federal mandates and all that rubbish.
Problem solved.
Federals would scream and sue and we could watch the fireworks on our fancy
state financed entertainment centers and talk to each other on our state cell phones, buying our Angus beef with our state debit cards. And seeing our physicians at local expense.
LG!
Patrick Henry proposed a similar arrangement, which also limited federal taxation to external objects like tariffs on imports, and left internal, direct taxation of the people to the states.