It\'s the point of federalism...: Actually, I have nothing against the fact that some states subsidise others. Victoria (where I come from) subsidises other states too, I believe. If some states did not subsidise others, why not just become six separate countries? No. Subsidies, like all forms of welfare, come to the very heart of what it means to be a community.
The present tax régime
is
flawed; the states cannot be independent or self-sufficient. The Commonwealth government returning to the States exactly their proportion of the tax they earn will not fix this.
In a Federalist system, the States would be responsible to themselves, but the Commonwealth Government must also be independent of the States. The Commonwealth Government should retain the ability to tax directly from money-earners who live in it, and should be able to distribute those funds as they want: Including to areas disproportionately to how it was drawn.
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