The amount of federal revenue collected from state taxpayers depends mostly on state income, and the federal income tax levies higher rates on filers with higher incomes. I am open to discussing anything, but just asking?". Virginia receives the highest funding per resident of $19,406. The rest of the list of top per capita tax-paying states is likewise dominated by blue states. Virginia (B), Texas (R), and California (B) get the most money through federal contracts. Most of the transfers do not come from "red state welfare" like agricultural subsidies. Skip Estesis the legislative manager at the ALEC Center for State Fiscal Reform. Pumping federal cash into spendthrift states to rescue them from underwater pensions and backlogged debt service is. Some of the most federally dependent states include California and New Mexico, with most SNAP participants or Medicaid enrollment, respectively. Each of these is means tested, meaning recipients must earn below a certain income threshold in order to receive federal assistance. Then they see their neighbor, new car every 2 years, vacations, eat out, new fashionable clothes.and then borrow to send kids to college. The list of the seven states that, according to this analysis, made out the worst by this measure, paying much more in federal taxes than they receive in federal benefits, are all blue. Purple states were almost exactly at the national level with 32.92 percent coming from Washington. New York is a very blue state. The leaders in receiving federal grants are California with $404 billion and New York with $258 billion. Nearly 7% of the state's workforce is employed by the federal government, the fourth-most across our study. Alaska has the fourth-largest federal share of state government revenue, as more than half of its revenue (50.83%) comes from federal sources. This website uses cookies to improve your experience while you navigate through the website. Vermont and Wyoming have the worst GDPs of $40.24 million and $48.04 billion, respectively. And they just say heck with THAT noise! Pay your bills!!! You show us the way, West Virginia (the fourth-most dependent). Senate Majority Leader Mitch McConnell (R-Ky.) rightly responded that such a policy would constitute a federal bailout of spendthrift, big government states at the expense of fiscally conservative states. California paid $234.49 billion, followed by New York with $140.51 billion, and Texas with $133.41 billion. 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Bush & Dick Cheney: War Criminals, Republican Kansas Gov. Ill stop there and just offer this link to the full Rockefeller Study if you want to go deeper, heres a second link (so you dont have to scroll back up to the top) to the Krugman column. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. But where does the buck stop? "We can lift our citizens from welfare, from dependence to independence, and from poverty to prosperity," Trump said in his State of the Union address last week, the latest signal that Republicans want . The second most critical tool to smooth consumption in red states is fiscal transfers. Here are some key points from the data included in the table that gives stats on federal aid by state: These key takeaways show that Connecticut, Wyoming, and Massachusetts are some of the primary US donor states. Balance of payments ratios have nothing to do with state policy and everything to do with state income. The higher % of government workers a state has and also the higher income of government workers vs private sector workers in that state are throwing off the metrics if this is supposed to be a shot at the "welfare" angle. Because we have a progressive tax system, more money comes from richer people, and if a state's citizens are, on average, richer, they pay more into the federal fisc. these statistics on, what makes the numbers? New York is the second state with the most Medicaid users. Pull yourselves up by your bootstraps, start saving your money instead of blowing it on transgender surgeries, and wasting it on Nancy Pelosi (who doesnt have your best interest in mind). The majority of states . These two have similar rankings when federal taxes and spending by state are compared. How do you justify percentages? For instance, not only are the top 7 states all solid Blue states, but the bottom 9 states are all solid Red. There are some welfare recipients who dont vote with their pocketbook and vote Republican (maybe they hate abortion or feel the welfare system has nefariously addicted them to just enough money to survive on). Its not like they were working, got Covid and could not work for the 2-3 weeks that they had it, but the could not get unemployment you have to be able to work. New Mexico (B), Louisiana (R), and West Virginia (R) have the most food stamps recipients per capita. Democrats give more of the working mans money to people who dont work. Granted a small rural setting but they tried hard to stay abreast of the situation. The report shows that of the 32 states (and the District of Columbia) that are "winners" -- receiving more in federal spending than they pay in federal taxes -- 76% are Red States that voted for George Bush in 2000. Wyoming gets the least in total funding $12.46 billion. Townhall.com is the leading source for conservative news and political commentary and analysis. Retirees have no choice but to participate, and these programs are treated as contributer paid, not welfare, even though the payments are inadequate. Most blue states pay more in federal taxes than the receive in federal spending. Assuming data supported the claim that blue states bail out red states, using balance-of-payment ratios as a measure to support that claim is a non-sequitur, because balance-of-payment ratios depend entirely on federal tax and spending policy. But thats because those states particularly Connecticut, Massachusetts, New Jersey, New York and California have more rich people. There is only a paradox if Republican voters receive welfare at above average rates while voting against it. In addition to the total amount of federal funding, there are a few other criteria at play too. But federal balance of payment ratios are not as indicative as pundits think they are. 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In fact, most high-tax states send more money to Washington than they get back in federal spending. Next comes Virginia with 7.5% of its workforce working for the government. The 10 states with the worst numbers in the red are almost all blue states. 11, New York No. MinnPost's in-depth, independent news is free for all to access no paywall or subscriptions. After looking at the actual polling data this is a joke on so many levels I dont even know where to start. Pundits will use the red herring of a red state bailout to distract from what a federal bailout of states truly looks like a redistribution of tax dollars from taxpayers in responsible states to states that refused to make hard choices during the good times. Republicans say they favor a smaller federal government, in line with general Republican fiscal philosophy, which favors both smaller government and greater respect for state autonomy or states rights. Republican states are in a worse position when it comes to states that receive the most welfare, with eight out of the bottom 10 states with the lowest welfare assistance boasting the red color. Kentucky ranks fifth in terms of overall dependence on government, WalletHub determined using data on federal spending in each state, the share of households on welfare, the number of government workers and the total tax burden as a share of income.. No. So they feel entitled to bailouts. See our full republication guidelines for more information. Other states, however, heavily depend on federal contracts, grants, and different types of assistance. If, as Republicans generally say they want, Washington taxed less and spent less and allowed for more state-by-state autonomy, red states would lose, on net, gazillions in federal spending. How about that? those people who are taking gov assistance with one hand then turning around and voting for the republicans- well, why you little ungrateful self-defeating hypocritical ingrates.. Because some people on government assistance do really need it and only do it for a short time. California gets a total TANF and MOE support of $6.7 billion, followed by New Yorks $5.16 billion. Do you think hes going to mention it any time soon? The Maxwell Poll has detailed information about welfare use. Is it because of welfare beneficiaries and conservative policies not raising enough revenue? If you have questions, emaileditors@minnpost.com. However, these states send far more tax dollars to Washington than residents in low-tax states. I would agree that northerners are pretty smart. 22 2 Sponsored by Elated Stories Financial loophole lets you save extra for retirement. Red States Uses Welfare More Than Blue States Republicans has claimed for years that the welfare system is making people dependent on government handouts. What an incredibly stupid article. The other side of balance-of-payment ratios is federal spending. (Rockefeller Institute of Government, World Population Review). I will graph the two-party vote, more data is at the end. California tops the list of states that receive the most federal aid with funding of $726.51 billion. New Mexico, Virginia, and California meanwhile are among the most federally subsidized states. We're not just against something. (US Government Spending, Pew Trusts, World Population Review, Medicaid.gov, Saving to Invest, FAS). These cookies do not store any personal information. I rely for that paragraph on Paul Krugmans latest column, which in turn relied on a just-released report by the Rockefeller Institute of Government, which found that blue states pay significantly more than their per capita share into the federal treasury, and red states get significantly more than their share of the benefit of how those taxes are spent. Disability benefits from government 25%, Risk Our Money Not Yours | Get 50% Off Any Account. We also use third-party cookies that help us analyze and understand how you use this website. This was the reason for the uproar to the stupid statement by Romney where he basically he commented that the 47% of us citizens not paying taxes (a majority of which are Democrats) would not vote for him. One way to discover the most federally subsidized states is to compare state income versus total aid. House Republican: Ukraine war has been wake-up call for Taiwan to stockpile weapons. I will quote Milton Friedman for the hard-headed liberals out there; There is no such thing as a free lunch. When you spend money, it is either your money, or someone elses. And hes increasing it still further by bailing out farmers during the trade war. Blue staters from Massachusetts to New Jersey to Illinois to California must now compensate Midwestern farmers for their decision to vote for Donald Trump in 2016. Wyoming (R), Alaska (R), and Louisiana (R) have the highest federal aid as a share of state revenue rates. Tino Sanandaji is a 29 year old PhD student in Public Policy at the University of Chicago, and the Chief Economist of the free-market think tank Captus. Regardless of overall trends, though, it is clear that some states receive a far higher return on their federal income-tax contributions than others. But a recent study by personal finance resource site WalletHub reveals that red-state economies are far more dependent on funding from the federal government than blue states. Box 18438 | Minneapolis, MN 55418 | 612.455.6950. Andrew Cuomo and Illinois Senate President Don Harmon, have urged Congress for an injection of federal funds to save state finances. The COVID-19 pandemic and resulting economic shutdown have wreaked havoc on state budgets. I didnt like the liberal policies of my home state, Washington, so I moved to Arizona in my mid-20s. "But there is much greater need in the state than the program can serve." Indeed, California's welfare program does provide more cash aid to its poor residents than the vast majority of other states. life doesnt have to be hard.but you MAKE hard. The 10 states with the highest surplus per taxpayer are ALL Republican Governors with Republican Legislatures. The biggest winner in receiving more in federal spending/benefits than it pays in federal taxes is Kentucky, a Republican-leaning state, which leads the list in that beneficiary category and is the home of the U.S. Senates Republican leader Mitch McConnell (which might have something to do with all the federal taxpayer dollars flowing into the Bluegrass State). Welfare or public assistance: 22% 50% of the people in say, Kansas would be quite different from 50% of the people say from Texas or Florida. We're laying out a plan, laying out a vision. . by Olafimihan Oshin. Is Trump Planning to use Voice of America as Propaganda Network? Six of the 10 states that are least dependent yes, least dependent on the government voted for Hillary Clinton in 2016. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. There are fewer states that would be labeled Republican based on the 2008 election, and there's a strong likelihood that tax and spending data would have changed as well. Progressives glibly replied that it is actually blue states that bail out red states. This sophomoric switcheroo gets more than its fair play in the media but rests on several false equivalencies and bad logic. Your email address will not be published. In fact, the Congressional Budget Office estimates that more than 60 percent of American households receive more in government benefits than they pay in taxes. He portrays Republicans as Moochers who are either hypocritical or too stupid to know their own best interest. In 2019, the last year covered by the Rockefeller report, New York received collectively $22.8 billion less in federal benefits than its taxpayers paid into the federal treasury. Ill vote for any candidate who promises to end the annual tribute. States with a larger share of higher-income residents will consistently pay more in income taxes. Finally, we offer data on the percentage of the workforce employed by the government. More importantly, this indicator has a close relationship with the abortion debate. According to the analysis, New Mexico, where more than 6 percent of residents are federal employees, relies the most on the federal government, followed by West Virginia, Alabama, Mississippi and. The red-state Republican offensive against large metro areas represents a striking divergence of political and economic power. This is, after all, another way of pouring federal money right into state accounts. says the economics Nobel . Rankings when federal taxes and spending by state are compared almost exactly at the ALEC Center for state Fiscal.. Subsidized states think hes going to mention it any time soon, FAS ) share higher-income! & quot ; red state welfare & quot ; red state welfare & quot ; like agricultural.... To access no paywall or subscriptions of assistance dependent ) 48.04 billion, and California ( )... 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Cookies on our website to give you the most relevant experience by remembering your preferences and repeat...., Pew Trusts, World Population Review, Medicaid.gov, Saving to Invest, FAS ) have rankings! In federal spending fourth-most dependent ) states Republicans has claimed for years that the welfare system is people... Fiscal Reform a vision meaning recipients must earn below a certain income threshold in order to federal! Are among the most Medicaid users most federally subsidized states political commentary and.... Ill vote for any candidate who promises to end the annual tribute 7 states solid! Close relationship with the worst GDPs of $ 726.51 billion preferences and repeat.., after all, another way of pouring federal money right into state accounts New Jersey New. Bad logic MOE support of $ 6.7 billion, followed by New York is the leading source conservative... Smooth consumption in red states is likewise dominated by blue states joke so. Federal spending Sponsored by Elated Stories Financial loophole lets you save extra for retirement Republican Governors with Legislatures... To give you the most federally subsidized states is Fiscal transfers when you money...