This idea was discussed here: http://rnc.mindmixer.com/taxes/1-2-3-no-federal-tax-plan . Under this plan, the current income tax, along with the IRS, would be scrapped. The former would be replaced by the state tax, which would tax the states based upon how much benefits they receive. This would force people to pay their fair share, allow for creative ways for both the state and federal governments to finance their operations, allow for states to have a say so in federal budgets, would encourage states to be more frugal with spending, and would lead to economic growth (due to the decline in federal taxes and need for them due to the disincentive for states to receive aid).



