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You are correct:

The vast majority of these taxes paid by blue states are from tax withholding from individual taxpayers' paychecks. Currently, that means they are withheld by their employers and sent directly to the US Treasury through the IRS.

It's the responsibility of the employer (or whomever is paying the recipient) to withhold and remit according to the law. Those funds are the property of the individual taxpayer and counted toward taxes owed when a return is filed (for income taxes, FICA and MED are similar).

If a state were to direct every employer to refuse to remit these withholdings, etc. to the US Treasury and instead send them to the State, the hammer would fall on the employer - the employer would still be liable for the money. What do people want to have happen, to have the State indemnify every single employer? The money would be paid out of whatever the State got, plus penalties and interest. The State would end up worse off, every employer would have an issue with the IRS, and every taxpayer would have their own issues.