Right. The state collects the taxes from the people and pays them to the Federal Government. Why the "middle man"?
The states' rights are basically being able to increase the "pain" of the federal mandates. Some limits are in place like no state may charge more
than X amount state sales tax, etc. The states tax citizens AND the federal government does, too - states just can't tax (whatever the limit is now)
above the federal taxes - but they CAN tax (Texas has no state income tax, however many areas of the state have the maximum allowable state sales tax
in place at 8.25%, whereas Kansas has a state income tax AND sales tax).
I think we agree in that the States have an obligation, based on income of it's citizenry, to tax the populace and businesses within it and pay the
Federal tax that way. I KNOW I KNOW that is overly simplified and doesn't take into account interstate businesses and multinationals, etc...
But, you know the Federal government is in debt several trillion FEDNOTES, right?