Some states currently pay less into the US Treasury than they get back in Federal aid, and some states pay more than they receive in Federal aid. States that avoid sales and/or income taxes should not be permitted to subsidize their state budgets with tax dollars taken from states that pay more than their fair share.
Therefore, reduce Federal payments to low-tax states that are net recipients of Federal funds, in accordance with the degree to which a state's own tax burden is less than the average of all states. This will encourage such states to increase their own revenues in order to maximize the amount of Federal aid they receive. It encourages responsible state budgets, and it will reduce the Federal deficit.



