
Perhaps the solution is to form a confederation of the states and let the larger cities within the state vote to remain in the state, join another state, or form their own state. Return the military to states and or the people. If we retain the federal government, remove their power to tax and enforce laws. Let them survive on donations from the states and the people. Limit the Supreme Court to settling disputes between the states and, except for moral power, remove their power to enforce ruling.
That will allow people to vote with their feet and leave states with high taxes or laws they disapprove of. Competition between the states for the people will result in people moving to states with the best laws.
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