The fact that this is skewed a bit to favor those who paid in based on their state of origin I am certainly ok with. The state had a strong hand in creating the business environment for people to thrive in such a way that they could become wealthy to begin with.
So I'm okay if some federal dollars have to be shaved off so states can take care of themselves. I do not believe there is an endless incentive for states to raise taxes at the expense of the federal government.