The current tax regime sees most taxes paid to the federal government, with smaller amounts paid to the state and county. The Federal government then distributes its haul back to the states.
A disruptive shift would be to put most collection on the states and counties, and drastically reduce the tax sent to Washington, along with the size of the IRS. Instead of letting Washington redistribute money to states, consuming much of the money through their operations, let the states keep it.
States would be able to complete with each other in a much bigger way, the money would stay closer to where it came from, and closer to where it’s needed. Less money would be consumed by the collection and distribution of taxes. The power wielded by Washington over the states would be greatly reduced.