That doesn't align at all with what the 2 parties believe or do.
In the Republican state (Republica), there would be massive wealth inequality precisely because there would few taxes and more unregulated capitalism. This would lead to a consolidation of wealth. There would no welfare and no one would be helping one another. They would apply the "bootstraps" mantra to each other. The poor would be happier because they would say "I just need better bootstraps." or some such claptrap. The well-to-do would be just fine.
In the Democratic state (Democratia), taxes would be significant but there would be a social safety net. They would outsource their work to the Republican poor because there would be no minimum wage in Republican land. Then they'd pay 50+% in taxes and exercise rent control and food stamps. The state would be less "content" because they'd constantly tinker with trying to make it "better". In the long run, they'd be the more prosperous state though.
See, poor Republican citizens would emigrate to Democratia for the safety net protections. This increased population means more people and more people means greater chances to discover the next great thing (people are a resource, something we often forget). These innovations would increase revenue, prosperity and standard of living across the state. However, some percentage of the wealthy Democratians would move to Republica to shelter their wealth from taxes. They would economically take advantage of the poor and solidify their political position. The state wouldn't be prosperous but there would be lots of prosperous people at the top of the food chain.