Malformed Constituions and efficient government

The Weboshpere is discussing the impact of income taxes on high vs low density and high vs low wealth states.
 Yglesias, DeLong. Delong. The discussion is closely related to the minimal government theory.   Income taxes become misallocated in dense or wealthy areas vs rural or suburban areas. The problem is the inability of Congressional districts to reform state boundaries on a infrequent basis, which I discuss here.. My solution was to use the Congressional district as the basic unit and allow democratic free association of  these districts to form state boundaries.  In other words, extend redistricting up to the state level.  Then modify the income taxes such that each formed state pays the same amount, apportioned on a flat rate basis to district voters.  Each district would return on legislator to Congress, as normal, but the Senate become redundant but harmless