People in the U.S.A. forget that "state" means a sovereign nation. Why are the "United States" not actually states? Taxes. Actually thats basically it. After what would be known as U.S.A. was founded, taxes where opt in. but the burgeoning central government was on the hook for all its international debts. and of course no state wanted to pay taxes...or did pay taxes. So they restructured and the "federal" goverment became superior to all states and its power has grown while states rights diminished. So yeah, in some ways wed be alot better if states where thier own sovereignty, and the founding fathers even put a stipulation that any state unhappy with the union can leave, but the last states to do that got the **** beat out of them and it was made illegal (CSA / Civil war).
TLDR; Founding states didn't want to pay taxes, federal government was formed to collect taxes.