However, we've seen how well that has handled the improper behavior of priests.
What tends to happen in the US is that issues tend to get ignored at the local level, and they basically go up the chain of authority until it falls in the hands of the federal government, not because they want to handle the issue, and not because they're the most capable, but because they can't pass the buck any further. And when the issue isn't handled, it's easier to blame the federal government than to identify the inability/unwillingness of local authorities to do it themselves.
Counterpoint: the various states suing the national government for overstepping its authority in the case of the ACA.
Also, lawsuits over immigration enforcement show that the national government can pass the buck just fine when it wants to.
Regardless of either point, the case is that local governments should be empowered and held accountable. To the extent that they "pass the buck", it's because citizens don't care that more and more issues are national issues. That's the trend that has to reverse, especially given that almost everyone is unhappy with one of the last two U.S. presidents.
My apologies for the late reply.
The argument is that the tax rates (and control over resulting revenues) should be more of a local decision. It's an orthogonal concern to what government, at all levels, should take responsibility for. And therefore how revenue is collected is also an orthogonal concern.