Here's a better method, one that has its origins in the Constitutional framework. The US taxes should be aportioned among the states. For example, California should be assessed 53/435 of the total amount needed, Georgia should pay 13/425, New York would pay 29/435, Wyoming would pay 1/435 and so on.
The states could raise the money in any manner they so chose to. They could raise tobacco taxes, gas taxes, real estate taxes or whatever. The point is, the local politicians (where the people have the most clout) could be held accountable for their profligate ways of the free-wheeling DC reps. Our local representatives would become our advocates instead of our rulers.
Companies could uproot to more favorable states where lower corporate taxes, or prescribed benefits, or regulations prevailed. Businesses could not be setup as tax fountains. People would be able to flee free-spending states, which would then lose their political power. The pressure would come from local pols to hold down Federal spending because there would be more visibility of the free loot being sent to influential mobs or constituents.