That’s a problem for the states to figure out. If their citizens wish to have higher taxes, so be it. But not all states will go that route. And the ones that do will lose jobs because the jobs will move to the lower taxed states.
We’re closer to be in agreement than might be suspected. I believe that everything should be looked at all the time. If there’s a new way of doing things (such as with technology) or an outdated program, then it should be changed or eliminated. Burdens that can reasonably be shifted to the state or local gubmints, should be shifted.
Keep in mind though, the states receiving the most Federal aid are the poor states, such as Alabama, and states with low population densities, such as Wyoming. They receive more money back from the fed than they put in. Rich states, such as NY, CT and CA typically receive less money back from the Fed than they put in. CT gets back something like 70 cents on the dollar.