Step 1:

The Federal Government Taxes States Instead of Individuals And Organizations

For example, a 25% tax on state GDP collects ~4.5 trillion dollars.

State GDP estimates from Bureau of Economic Analysis

Step 2:

Each state is free to decide how to collect the money owed the federal government.

Solution Rationale

Save Billions

States already have a foundation for tax collection in place. Removing a separate federal compliance burden saves billions even with the cost of scaling up state collection.

*cost of collection estimated using IRS collection rate per $100 (www.irs.gov/pub/irs-soi/12db29ps.xls ); savings estimated using roughly half the federal compliance cost estimated by Tax Payer Advocate (https://taxpayeradvocate.irs.gov/Media/Default/Documents/2016-ARC/ARC16_Volume1_LR_01_TaxReform.pdf)

Deal With Differences

There is increasing polarization of culture and ideology at the national level. Delegating policy details to smaller regions (states) where differences are less severe is a necessary part of governing an evolving democracy. Refusal to do so fuels hostility, as the data shows.

Summary Of Benefits

Win for the federal government

More federal revenue for less federal overhead means billions of dollars to spend elsewhere.

Win for state governments

Gain power as gatekeeper of own financial resources More money stays in state when residents save federal compliance costs

Win for citizens