Well, we've tried cutting their taxes, but their Senators voted it down.
The notion of a wealth transfer from blue to red is because when the Federal Government makes purchases, it must do so in places that actually produce something tangible (that certainly wouldn't be NY, NJ, CT, VT, HI, DC, MD, or MA), while defense activites are credited to those states that host military bases - mostly red states. On the other hand, lots of corporations are incorporated in DE and NY, so they get credit for corporate taxes not really earned there. And the choice of large numbers of wealthy people to live in NY, LA, SF, BOS, CHI, NJ, and CT is the other reason they pay an excess of taxes, not because they are more productive.
Basically, the blue states are taxed to pay out subsidies (farm welfare, roads which cannot be supported by local population density) to the red states.