The big problem with that idea, at least in the United States, is the States’ employees don’t actually work for the Federal government, and requiring them to pa

The big problem with that idea, at least in the United States, is the States’ employees don’t actually work for the Federal government, and requiring them to pass fines collected upwards would violate the 10th Amendment. Nor is it within Congress’ enumerated powers to seize the assets of the States or compel services from each State. The States are also specifically prohibited from having their own monetary policies, and thus have no incentive to cooperate with a money destruction regime.