Fair tax, flat tax, income tax, whatever...doesn't matter how the number is arrived at. But what if we individuals and businesses paid our taxes ONLY to the state govt, who in turn paid a state's share tax to the Feds? Would give us more control and would bring a free market approach to taxes inasmuch that those with lower tax rates would see increases in business and population. Would also allow one state to use a flat tax and another to use the Fair tax, etc. At first glance, I'm not seeing a downside here...
I don’t know alot about the economy. What I do know is that the federal government takes from the states and then the states must whore themselves to get some of it back.
If it was done the way the founders intended, then states that want government supplemented health care could have it, states that want a larger welfare state could have it. My point is that across this country, funds are used to support programs in states that are not beneficial to all states. Money must then be taken from each state to support the growing dependency on federal hand outs.
People would then have the opportunity to determine if they are happy with the way their state spends its money. Or they could move to a state that spends it the way they want. Then all of these liberal states could take in the socialists and leave the federalist states alone.
Your idea about each state paying a share to the feds raises a question. How was it done before the 16th Amendment? I am ashamed to admit I don’t know.