US states should have autonomy—like EU countries

All we need to change is taxation.

What if US states had the same autonomy as EU countries?

Theoretically, Vermont could become a social democracy just like Malta—after all, they have the same population size and GDP per capita. California has the same population as Spain and is twice as rich by GDP per capita—they could afford to subsidize childcare, healthcare, and education just like Spain. Despite being our least populous state, Wyoming is richer than Sweden or the Netherlands on a per capita basis—it could establish a sovereign wealth fund just like Norway does, investing its surplus oil revenues for the benefit of its citizens.

The only reason US states can’t provide for themselves the way EU countries do is that, in the US, the federal government collects the bulk of tax revenue, not the states.

If US states could collect taxes and manage their own budgets the way European countries do, higher-tax states like California, New York, and Massachusetts might expand social programs like universal healthcare, education, and childcare. They might invest in public transportation, tech development, and renewable energy. Lower-tax states like Texas, Florida, and Nevada might replace income taxes with sales taxes; privatize public services like charter education, healthcare, and toll roads; and invest in infrastructure projects. There would be a lot of variation between states—Hawaii might limit who can purchase property on the islands, Utah might expand refugee resettlement programs, Wyoming might increase land conservation efforts for hunting and outdoor recreation.

European countries have this same kind of variation: Germany has fewer big cities, but many medium sized ones and thus invests its dollars in interconnected public transportation infrastructure. Norway has a lot of mountains and fjords, and allocates its revenues toward conservation and national parks. Because of their low-lying geography, the Netherlands invests significantly in flood control. Spain, which has more coastline than other countries, invests significantly in fishing infrastructure.

Small regional communities are generally better at deciding what they need, and where they need to allocate their money. Why shouldn’t the states do so too?

We don’t need to talk about secession to make this a reality, just taxation.