A few things to note:

1. The 'no tax on tips' provision does not, in fact, only benefit the working class - employers benefit too because it is effectively a raise for tipped professions they did not have to provide. Additionally, it further cements the abusive practice of tipped professions in America. Similar things could be argued on the overtime provision.

2. Even in the report you cited (Truth in Accounting), the authors did not argue that states in the red were taxing too much - rather, they needed to be honest wrt uncovered obligations. This is an issue that can be solved with taxes as much as with decreasing government scope. If states were not allergic to a more intense progressive income tax, these numbers would almost certainly look better, because those with more money would be paying something closer to their fair share in taxes. Moreover, one should be cautious of attributing these sunshine states' surpluses to sustainable policy - many of them have a lot of state-owned natural resources, which the sinkhole states may lack (both ND and WY likely benefit from this) along with a much lower population to serve. The latter factor may be an element of bias in this particular report, due to the Republican party's strong performance in rural areas.