Personally, I think the correct structure would be for states to tax their resident citizens in whatever way they see fit (property, income, sales, etc). And t

Personally, I think the correct structure would be for states to tax their resident citizens in whatever way they see fit (property, income, sales, etc). And then Federal gov't taxes the states for a percentage of their tax revenue. That would eliminate the need for completely redundant state and Federal income tax collection systems. So (for people in states with income taxes), instead of filing two separate tax returns and sending (say) 10% to your state and 30% to the Feds, you file one return sending 40% to your state and the Feds tax your state for 75% of their revenue (which happens to include 30% of your income).