There is nothing saying state taxes can’t be made more progressive. States can also provide retirement plans that can be liquidated without penalty or are portable if someone moves out of state. This would look more like a 401K plan but could conceivably be structured to still offer monthly payouts upon retirement like SS.Chicago, state and local taxes tend to be more regressive than say the progressive federal income tax.
State and local taxes include sales, property, and user taxes which in most cases are impossible to escape.
On the federal level most workers find money coming out of their paycheck for Medicare and Social Security.
Often argued our total government taxation system which includes federal, state, and local government is actually fairly equitable for the rich and less affluent when you take into consideration the progressive federal income taxes and the regressive state/local taxes.
Medicare is more challenging and perhaps that’s something that remains on the federal level. But I also believe there is a market gap for proving healthcare to the elderly that could be filled if we’re weren’t so reliant on employer based plans.