I think the effect of this is most insidious in infrastructure spending. And I'm not talking about major highways, which naturally go through rural and poorer areas while actually serving the urban areas they connect.
The urban areas tend to have people who insist upon higher taxes, while the people in the rural areas commonly want the reverse. Meanwhile, because of those taxes being redistributed in the way they are, money that could go toward mass transit in cities is instead being funneled to road projects in rural areas. With all that money, the rural areas are able to secure funding (but not in any way, shape, or form afford) oversized infrastructure so they can turn their places into post-apocalyptic wastelands of Walmarts and car sewers.
Rural towns may develop in horrendously bad ways, but at least if they were less well-fed by federal and state programs they might come to meet the reality that their development patterns are completely unsustainable.
You're confusing suburb and rural- rural areas have well water and septic tanks, 2-lane roads that eventually lead to the Walmart near the interstate. And the money is state and local, not federal, unless you have a senator that really swings above his weight class (like a Kennedy or Byrd).
I should have been more diligent by including suburbs in my comment. Furthermore, you're very right that the water and sewage is even more important than roads, and that overbuilding happens in the suburbs. But you may also have an overly optimistic picture of rural areas, because I can think of quite a few four lane highways where I grew up that go out into relative nowhere, and do so at huge cost. There's a town of 20k people there that has a beltway!
The urban areas tend to have people who insist upon higher taxes, while the people in the rural areas commonly want the reverse. Meanwhile, because of those taxes being redistributed in the way they are, money that could go toward mass transit in cities is instead being funneled to road projects in rural areas. With all that money, the rural areas are able to secure funding (but not in any way, shape, or form afford) oversized infrastructure so they can turn their places into post-apocalyptic wastelands of Walmarts and car sewers.
Rural towns may develop in horrendously bad ways, but at least if they were less well-fed by federal and state programs they might come to meet the reality that their development patterns are completely unsustainable.