Actually the US started to go downhill with Reagan. HIs low tax rates on the rich make it impossible to have a Fair modern country.
I think a problem that Democrats don’t realize, is this country is too large and diverse to operate under a single all-encompassing governing policy. And the founders realized that from the beginning, we are a federation of States. So, it appears from your sidebar info that you might be a New Yorker, so let me continue expounding on this issue using New York as an example. There is actually no real need for huge federal tax cuts to hurt New York. It only hurts New York if New York has made itself a dependent, like a vassal, on federal taxing/spending.
Let’s take Medicare for example. Since New Yorkers earn more in general than people in the rest of the country, the federal payroll tax skim will necessarily take more money out of New York than average. Then those payroll taxes just go into the general fund along side income taxes and other revenue sources, and the US Treasury draws on the general fund to pay Medicare. The Medicare “trust fund” is mostly just an indicator, it really doesn’t tell the whole story. So in the case of New York, all kinds of funds are siphoned out of New York into Washington DC, and then FEWER dollars than were siphoned out, are returned back to New York. Now do you think other states are grateful for the transfers from New York? Nope, in fact they are often resentful of New Yorkers who they feel are trying to impose their values on them. Many of them in fact want to punish New Yorkers; that’s what the whole repeal of the state and local tax deduction is about. Many want to gleefully sit back and watch New York suffer, like a big dumb milk cow that will be used (and abused) until death. I say wake up and don’t be a chump.
In terms of healthcare policy, here’s an example of what New Yorkers could do…
Step 1: Agitate for the repeal of Medicare and Obamacare, and demand matching tax reductions to go with it. A federal medicaid type program for the poor (that should get constitutionally authorized first) could be funded through a national sales tax. I also think that the federal business tax deductions for health insurance should be eliminated (it’s just a huge federal market distortion that removes sovereignty from the states).
Step 2: New York should use the resulting funding windfall (New York money staying in New York), to implement a public option health insurance plan. It could be simply means tested with a deductible (and/or premium) that shrinks for people with less income.
Step 3: Limitations on out-of-staters waltzing into New York and taking advantage of the plan would have to be imposed. Something like a five year New York residency waiting period before being eligible.
I truly think the repeal of the state and local tax deduction should be a wake-up call for “blue states”. Republicans intend to do you harm, and as long as you’re ceding sovereignty to the federal government, you’re being complicit in that harm. Federalism is the way out, it’s baked into the constitution, and all you have to do is claim it. I think we as a nation can work just fine as mostly a federation for the common defense, but trying to impose one-size-fits-all social policy is a recipe for resentment. There’s just too many differences between New Yorkers and say, Alabamans, for that to work.