There’s no diversion by the states ~ you chose where you want to live. Besides, federal tax levels ARE NOT determined by what is needed by the government ~ they’re willful, arbitrary and capricious in the extreme. No decision by any state can be traced to the results!
My point is simply that as a result of the deduction for state and local taxes, low tax state residents (Texas) pay a higher net percentage of their income in federal income taxes than do high tax state residents (New York, California...). This means that Texans (and others) end up paying more than their fair share of federal taxes in order to make up the taxes not collected in the high tax states, due to the deduction.