I'm all for targeted tax cuts, as long as the target is people in trouble financially or those who are keeping afloat but don't make much money. I resent tax cuts for the rich and it seems like that's where the majority of the tax cuts really go. Someone making over a million dollars doesn't need a tax cut but then, Bush gave it to them anyway.
Because states can be so different, I have always liked the idea that they get to decide where the money is best spent. Along with tax cuts nationwide, giving states the wherewithal to target what they know will work best for them, makes sound economic sense to me. I wouldn't want to be the person deciding how much each state gets though.
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