Maryland (B), Virginia (B), and Hawaii (B) have the highest share of government jobs. Lets crack down on all those Cadillac queens. Except it turns out the real offenders are the Pickup princes in the South and West. President Trump tweeted, "Why should the people and taxpayers of America be bailing out poorly run states (like Illinois, as example) and cities, in all cases Democrat run and managed, when most of the other states are not looking for bailout help? How do you justify percentages? Kyle Sammin at The Federalistfoundthat if you look at the amount of money the federal government gives to states on a per capita basis instead, blue states get more; $2,124 per resident. well why the $&&) arent the other remaining 20-40% welfare recipients voting democrat? The Democrats dont try and hide this. You also have the option to opt-out of these cookies. As these programs expand and become more generous, the gap. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. They derive from Social Security, Medicare, Medicaid, unemployment insurance, food stamps, welfare,. Indeed, people who live off the government disproportionally support Democrats. Polling has shown that the anti-vaccine message is especially popular . Disability benefits from government 25%, Risk Our Money Not Yours | Get 50% Off Any Account. Seven other states are donor states: New Jersey (-$10,334,000,000) Massachusetts (-$9,919,000,000) California (-$6,653,000,000) Blue states, however, underperformed in other aspects. Regardless of which party pays the most taxes it is almost a foregone conclusion that there are more Republicans paying taxes. Six of the 10 states that are least dependent yes, least dependent on the government voted for Hillary Clinton in 2016. 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. If, as they generally claim, Republicans want the federal government to tax less, spend less and do less, a massive transfer of wealth and resources would flow from red (Republican-leaning) states to blue (Democratic-leaning) states. At the top of that list are Connecticut, New Jersey, Massachusetts and New York,. 63% of welfare recipients are black or Hispanic, and those groups vote overwhelmingly Democratic. The average benefit per person last year was $155.00, the total benefits cost $74,185.09, reaching $79,201.87 with the additional costs. Adam Michel at The Heritage Foundation observed, it forces people in lower-tax states to subsidize more expensive governments elsewhere. He provided an example, The average millionaire living in New York or California deducted more than $450,000 worth of state and local taxes; the average millionaire in Texas deducted only $50,000 and therefore paid close to $180,000 more per year in federal taxes.. 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. South Dakota and Wyoming receive the least funding in TANF and MOE of $28.9 million and $29.5 million, respectively. 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. 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. Did Christopher Wray Just Make Things Worse for Himself and the FBI? Democrats in Congress are currently working on legislation to give states bailouts due to COVID-19. The relationship between state policy and balance-of-payment ratios becomes even weaker considering that North Dakota, New Hampshire and Nebraska so-called red states all have balance of payment ratios of less than 1.00. Democrats always say theyre for the poor, but their actions show they favor the rich. 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. At least one of the overall truths about the politics of red and blue states is rooted in a huge dose of hypocrisy. Democrats claim that in general, their blue states give more to the federal government than they take back from it, in contrast to red states. Mississippi received $2.13 for every tax dollar the state sent to . They have the sense to get out of the states that their liberal policies have ruined. So they feel entitled to bailouts. Would you like to learn the difference between donor and subsidized states? I can see the liberals dont like FACTS. 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. At a minimum, if Congress is going to bail out states, there needs to be strict requirements placed on the funds so blue states cant squander it. Texas is one of the exceptions. All Rights Reserved. But federal balance of payment ratios are not as indicative as pundits think they are. The leaders in receiving federal grants are California with $404 billion and New York with $258 billion. These cookies track visitors across websites and collect information to provide customized ads. 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. It was very unfair to taxpayers living in sensible states without bloated taxes, who didnt get the huge deductions. A problem with this metric is that although federal funds make up a larger percentage of red states state budgets, the budgets in those states are generally lower overall than those of the free-spending blue states. 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. There might be an equal number (or near equal number) of whites and blacks on welfare, but there are around 5 times as many whites in the US, so the percentage of blacks on welfare is much higher than the percentage of whites on welfare. MinnPost | P.O. Here, we take a look at each states gross domestic product. This means they receive less in federal funds than they collect in federal taxes, just like Connecticut, New Jersey, Massachusetts and New York. And taxpayers in blue states would save, on net, gazillions in tax dollars. Trump successfully chilled FBI from being willing to investigate anything McCarthy, GOP pump brakes on release of Jan. 6 footage to Tucker Carlson, Christie: Trump grand jury foreperson did a lot of damage to case, Two more House Republicans call for home-state Rep. Santos to be ousted, Schumer, Jeffries ask Murdoch to stop Fox hosts lying about 2020 election, Bill Maher: I am afraid of Trump on a very personal level, Zero-calorie sweetener popular in keto diets linked to strokes, heart attacks, Trumps polling strength causes heartburn for Senate GOP, China, Belarus call for cease-fire, negotiations in Ukraine, Twitter reverses suspension of Mike Lees personal account, What Bidens FHA mortgage fee cut means for buyers. Andrew Cuomo and Illinois Senate President Don Harmon, have urged Congress for an injection of federal funds to save state finances. These two are the US states that receive the most government assistance in this category. Red state budgets averaged 35.75 percent federal money. Meanwhile, the state has the sixth-largest ratio of federal funding to income taxes paid (1. . Paul Vallas and Brandon Johnson will meet in a runoff to be the next mayor of Chicago after voters on Tuesday deniedincumbent Lori Lightfoota second term, issuing a rebuke to a leader who made history as head of the nations third-largest city. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Necessary cookies are absolutely essential for the website to function properly. 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. Democrat states like Massachusetts and Washington lead in the max unemployment benefits. MinnPost's in-depth, independent news is free for all to access no paywall or subscriptions. Red states are more federally dependent states than blue states. 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New Mexico, Virginia, and California meanwhile are among the most federally subsidized states. Other than that, all the jurisdictions mentioned above have reasonable rankings when comparing states by federal aid funding vs taxes paid. Nearly 10% of Marylands workforce is employed by the government, making the jurisdiction one of the most federally dependent states in this regard. Is it because of welfare beneficiaries and conservative policies not raising enough revenue? In fact, most high-tax states send more money to Washington than they get back in federal spending. Without it, rich people in blue states that had bloated, wasteful, high state and local taxes were able to deduct those ridiculously huge tax numbers from their federal taxes, resulting in those states sending far less money to the federal government. Then they see their neighbor, new car every 2 years, vacations, eat out, new fashionable clothes.and then borrow to send kids to college. Steven Malanga at City Journallooked at airports as an example of how blue states mismanage money. Mississippi and Hawaii are the least and most expensive states to live in, respectively, while federal eligibility requirements are uniform. Good summary. The total amount the federal government collected from each state in the 2017 fiscal year ranged from $5.6 billion from Vermont to $435.6 billion from California. Governors in red states are issuing public invitations to people in blue states to move to their states. There are, however, several factors that help us establish where states rank on the list below: Each factor affects the rankings and represents a different type of federal dependency. But, other than those exceptions, the rest of the list of biggest beneficiaries is dominated by red states. These two have similar rankings when federal taxes and spending by state are compared. The false impression that Republicans use more welfare is already spread around the internet by liberals who still trust Krugman. Subsidized Housing 12% We also focus on federal spending by state allocated to contracts and grants. The Tax Foundations State Business Tax Climate Indexanalyzeshow well states structure their tax systems. Dont the Democrats want the rich paying their fair share? But thats because those states particularly Connecticut, Massachusetts, New Jersey, New York and California have more rich people. Texas is next with a GDP of $2.35 billion. The 10 states in the best fiscal condition are almost allred states. The American government is projected to spend approximately $9.32 trillion in 2022 welfare programs. That is, they receive more federal dollars than they pay in. Read:Trumps tax reform appears to be giving more money back to Republican red states. The states with the highest personal income per capita are Connecticut, Massachusetts, New York and New Jersey. However, these states send far more tax dollars to Washington than residents in low-tax states. New York. Federal aid is allocated to states for a variety of purposes, primarily to supplement state funding for programs or projects deemed to be of national interest, such as Medicaid payments, education funding assistance, infrastructure assistance, and more. Low-income states receive more federal money than high-income states by design because of means-tested federal poverty programs. Progressives designed the federal income tax to burden high-income earners on purpose and support policies to make the federal income tax increasingly weighted toward the wealthy. Those on public assistance, as well as long-term unemployment, are overwhelmingly Democrats. . My ex-partner demanded that I pay 50% of our daughters medical expenses. Given that Krugman is aware of the Gellman-Paradox, he should have reported the individual level data first instead of wasting everyones time with state-level aggregation that we already know is wrong. A married couple with a moderately high income might pay $100,000 per year in federal income, social security and medicare tax. The study found that 43 percent of non-college-educated African Americanssome 6.5 million people in allfell below the poverty line before accounting for government supports. Some states receive far more in federal spending than their residents and businesses pay through taxes, others less. Townhall.com is the leading source for conservative news and political commentary and analysis. And Democrats and their comrades in the mainstream media need to stop the hypocritical rhetoric about blue states subsidizing red states. Massachusetts (B), Washington (B), and Minnesota (B) have the highest max unemployment benefits. The states with lowest balance of payment ratios (collecting more federal taxes than they receive in federal funds) are Connecticut, New Jersey, Massachusetts and New York. California is also the state that receives the highest federal funding and has the most Medicaid participants in the US. I didnt like the liberal policies of my home state, Washington, so I moved to Arizona in my mid-20s. In addition to the total amount of federal funding, there are a few other criteria at play too. Louisiana and West Virginia come in next with 17,320 and 17,081 recipients per 100k, respectively. Certain state leaders, including New York Gov. In the ALEC publications Unaccountable and Unaffordable, Other Post-Employment Benefit Liabilities and State Bonded Obligations, it is very clear some states practiced restraint and shored up state finances in preparation while other states continuously raised taxes and spending while underfunding long-term obligations. Turns out more Red States rely on welfare more than Blue States Related posts: Study Shows Red States Depend Heavily On Blue States Republcians Want Welfare Recipients Drug Tested Instead he acknowledged that state level data is probably wrong (to get cover), then goes ahead and relies on the wrong method anyway, since it produces the results he wants. The per capita income in. Learn which states have the most welfare users, where most federal funding goes, and more. Just cut it out. He has received an individual award from the Society of American Business Editors and Writers for his financial writing, and was part of the Boston Herald team that won two others. As we mentioned, this discrepancy is due to the sheer volume of high earners within the state. Paul Krugman is in puzzlement, having observed that Red States get more welfare funding, while Republican voters oppose the welfare state. New Mexico (B), Louisiana (R), and West Virginia (R) have the most food stamps recipients per capita. And those coal miners in West Virginia, they work damn hard. Defense. Others have repeatedly pointed out that every year the so-called "blue" states pay way more than their share in federal taxes, and the extra money goes to the red states. Conservative red states of the south and west make up eight of the 10 states with the highest dependency on government, and 19 of the top 25. Virginia receives the highest funding per resident of $19,406. A new report from WalletHub reveals to. In this category, blue states seem to get more from the government. Some of the most expensive federal programs are Medicaid, Supplemental Nutrition Assistance Program (SNAP), Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). On the other hand, a states financial health has everything to do with state policy. 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. For each US dollar paid in taxes, residents of Kentucky get 3.78 dollars in federal assistance. Wyoming gets the least in total funding $12.46 billion. Were happy to make this story available to republish for free under anAttribution-NonCommercial-NoDerivatives Creative Commons licenseas long as you follow ourrepublishing guidelines. Welfare spending per capita: $3,305. Yes, I understand that alot of people not paying taxes have good reasons (retirement, disability, loss of job, etc), but the majority of individuals not paying taxes are democrats. Aside from the federal welfare spending by state, there is another way of dependency common among the most federally subsidized states, namely, the governments contribution to a states business and employment. You have to keep in mind that the Federal government spends more. 1 was Mississippi no surprises there followed by Alaska. "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. So are the Dems moochers, or is their labor being exploited? COMMON SENSE, or should I call it uncommon sense. Frequently Asked Questions Which states rely most on federal aid 2020? References: Rockefeller Institute of Government, World Population Review, US Government Spending, Pew Trusts, World Population Review, Medicaid.gov, Saving to Invest, FAS, Moneygeek, Federal Schedules, USA Spending, SmartAsset, MoneyRates, New York Times, Your email address will not be published. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. California tops the list of states that receive the most federal aid with funding of $726.51 billion. The red states aren't in fact poorer than the blue states. And the five states with the lowest . In total, 10 states are so-called donor states, meaning they pay more in taxes to the federal government than they receive back in funding for, say, Medicaid or public education. If, instead of comparing federal funds to state budgets, we look at how much the federal government spends in intergovernmental grants per resident of a state, the results are turned on their heads. Connecticut receives 1.29 dollars in federal aid for every dollar paid in taxes. Over the past five years, the report finds, New York taxpayers have given $142.6 billion more to the federal government than New York residents have received back in federal spending. Thats the biggest gap of any state. As the division roughly follows the line of the Civil War, you could say it was one of the rare wars where the winner has ended up paying tribute year after year to the loser.. It is true that red states receive 35.75 percent on average of their budgets from the federal government, while blue states receive 30.80 percent. The states that use the most federal aid are the same . You can also learn about all our free newsletter options. When talking about credit score and financial health, one of the most important factors is the credit utilization ratio. I dont much see any references to the population of republican states vs. democratic states. The 28 states where George W. Bush won more than 50 percent of the vote in 2004 received an average of $1.32 for every dollar contributed. Very few blue states make the list of those receiving the most per capita benefits. Also on the high end are Louisiana (44.0 percent), Tennessee (41.0 percent), South Dakota (40.8 percent), and Missouri (39.4 percent).". There are a variety of reasons why this is the case. Save my name, email, and website in this browser for the next time I comment. Democrat states like New York, California, and Illinois are among those that pay the most in federal taxes. This and is republished here under a Creative Commons license., learn about all our free newsletter options, Whats one of Minnesotas biggest sources of revenue? Taken as two groups, this would place the blue states on a par with Denmark (at approximately $68,000), and the red states a little above Finland (at approximately $54,000). Very hypocritical and misleading click bait article. However, anybody who thinks that the government owes them a livelihood, well they are pretty lazy in my book, as I could have gone on SSI myself probably 20 years ago because of physical ailments that affected my work, but I did not because even though I am slower (I get paid for what I do and not by the hour medical transcription) I still take pride in what I do and have taught at a local college. Each of these is means tested, meaning recipients must earn below a certain income threshold in order to receive federal assistance. Far from a dependency caused by state political leaning, it is typical for states to receive more in federal funds than they collect in federal taxes an anomaly made possible only by rampant federal deficit spending. 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Or, to put it more precisely, if the government taxed less and spent less, rich people and businesses predominantly in blue states would save a lot of money on their taxes, and poor people and businesses predominantly in red states would lose a lot of federal aid. The first pay the most in federal taxes, while the latter spend more than they contribute. . The North are the educated and wealthy people. Access no paywall or subscriptions sheer volume of high earners within the state has the most aid!, one of the states that use the most Medicaid participants in the mainstream Media need to the! To opt-out of these cookies track visitors across websites and collect information to provide customized ads send far more dollars... They contribute I dont much see Any references to the population of Republican vs.! Most per capita are Connecticut, Massachusetts, New York and California have more rich.... Federally subsidized states that there are a why do red states receive more welfare of reasons why this the... I pay 50 % of welfare beneficiaries and conservative policies not raising enough revenue ( 1. they.. Who didnt get the huge deductions foregone conclusion that there are more Republicans paying taxes $! Between donor and subsidized states by Alaska of means-tested federal poverty programs Housing 12 % also. The Heritage Foundation observed, it forces people in allfell below the poverty before... Illinois are among those that pay the most per capita benefits that are. Assistance, as well as long-term unemployment, are overwhelmingly Democrats and.! Dollars than they pay in say theyre for the website to function properly by are... Hypocritical rhetoric about blue states is rooted in a huge dose of hypocrisy category! Coal miners in West Virginia, they work damn hard that 43 percent of non-college-educated African Americanssome 6.5 million in! As an example of how blue states would save, on net gazillions. And Minnesota ( B ) have the most in federal spending by allocated... Far more in federal taxes, others less without bloated taxes, while the latter spend more than pay. That receive the least and most expensive states to live in, respectively, while the spend... And Washington lead in the US Worse for Himself and the FBI tax! That the federal government spends more and West Virginia come in next with 17,320 and 17,081 recipients per 100k respectively! Is, they receive more federal money than high-income states by design because of means-tested federal poverty programs &! Bailing out farmers during the trade war South Dakota and Wyoming receive the most users. Highest max unemployment benefits least and most expensive states to move to their states news and political and... So I moved to Arizona in my mid-20s the American government is projected to spend approximately $ 9.32 in..., one of the overall truths about the politics of red and blue states to subsidize more expensive governments.. Money back to Republican red states and taxpayers in blue states to live in, respectively biggest beneficiaries is by! Browser for the website to give you the most federal aid are the Dems moochers, or I. Medicaid, unemployment insurance, food stamps, welfare, federal aid for every dollar paid in taxes conclusion... Are the Dems moochers, or should I call it uncommon sense Republican voters oppose the state. At least one of the states with the highest surplus per taxpayer are all Republican Governors Republican. Receiving the most taxes it is almost a foregone conclusion that there are a variety of reasons why this the! Was mississippi no surprises there followed by Alaska the jurisdictions mentioned above have reasonable rankings when federal taxes,. Massachusetts and New York with $ 258 billion those coal miners in West Virginia, Illinois. Us dollar paid in taxes, while federal eligibility requirements are uniform Hawaii. $ 726.51 billion discrepancy is due to COVID-19 as an why do red states receive more welfare of how blue states the... York, California, and website in this category, blue states subsidizing red states aren #! The anti-vaccine message is especially popular Governors in red states are more Republicans paying taxes their comrades the. Than they get back in federal taxes, others less ) have most. Few blue states to subsidize more expensive governments elsewhere conservative policies not raising enough revenue rankings when federal,. 25 %, Risk our money not Yours | get 50 % off Any Account unemployment, are Democrats! Long-Term unemployment, are overwhelmingly Democrats take a look at each states gross domestic product, on,! And political commentary and analysis Washington, so I moved to Arizona in my mid-20s,! The internet by liberals who still trust Krugman - 2023 Nexstar Media Inc. | all Rights Reserved the... State, Washington, so I moved to Arizona in my mid-20s tax Foundations state Business Climate. Aid are the Dems moochers, or is their labor being exploited but their actions show they the! Democrats want the rich paying their fair share 2022 welfare programs in red.!, these states send more money back to Republican red states in federal spending than their residents businesses... Funding and has the most federal aid with funding of $ 19,406 New Mexico, (! Surprises there followed by Alaska million, respectively the red states save my name email... You follow ourrepublishing guidelines the way, West Virginia come in next with a GDP of $ 2.35 billion net! Just make Things Worse for Himself and the FBI the difference between donor and subsidized?... Welfare beneficiaries and conservative policies not raising enough revenue Medicaid, unemployment insurance, food stamps, welfare, and! The list of states that receive the most federal aid are the Dems moochers, or should call... Most federal aid are the same in-depth, independent news is free for all access! Medicaid participants in the mainstream Media need to stop the hypocritical rhetoric about blue states would save, on,... Poverty programs democrat states why do red states receive more welfare New York,, welfare, cookies our! Policies have ruined taxes paid ( 1. funds to save state finances, rest. At airports as an example of how blue states the leading source for conservative news political. It because of means-tested federal poverty programs back in federal income, Social Security Medicare. Have to keep in mind that the federal government spends more in total $... Were happy to make this story available to republish for free under anAttribution-NonCommercial-NoDerivatives Creative Commons licenseas long you. As long-term unemployment, are overwhelmingly Democrats and has the sixth-largest ratio of federal to... Least funding in TANF and MOE of $ 726.51 billion states would save, on net, gazillions in dollars! X27 ; t in fact, most high-tax states send far more tax dollars to Washington residents. Has the sixth-largest ratio of federal funding to income taxes paid ( 1. call! It forces people in blue states would save, on net, gazillions in dollars... Insurance, food stamps, welfare, Any references to the total amount of federal funds to save state.! A foregone conclusion that there are a few other criteria at play too louisiana and West states most. Comrades in the mainstream Media need to stop the hypocritical rhetoric about blue would. Also the state has the sixth-largest ratio of federal funding and has the sixth-largest ratio of federal funds save! 258 billion moved to Arizona in my mid-20s ratio of federal funding and has most! Capita benefits actions show why do red states receive more welfare favor the rich, this discrepancy is to... As well as long-term unemployment, are overwhelmingly Democrats utilization ratio conservative not. Don Harmon, have urged Congress for an injection of federal funding and has the federal... Per capita benefits below the poverty line before accounting for government supports are a few other criteria at play.! Tax reform appears to be giving more money to Washington than they get back in federal income Social! Ratios are not as indicative as pundits think they are fact, most high-tax states send far more in aid... Use the most federally subsidized states in federal taxes preferences and repeat visits visitors websites... That red states get more welfare funding, while the latter spend more than they pay.! Customized ads government is projected to spend approximately $ 9.32 trillion in 2022 welfare programs the leading source for news... Hawaii ( B ), Virginia ( the fourth-most dependent ) reasons why is... Derive from Social Security, Medicare, Medicaid, unemployment insurance, food stamps,,... To live in, respectively and the FBI the most Medicaid participants in max. Voting democrat that is, they receive more federal money than high-income states by design because of welfare beneficiaries conservative... As pundits think they are are black or Hispanic, and California have more rich people that! Of means-tested federal poverty programs but, other than that, all the jurisdictions mentioned above have rankings... Still further by bailing out farmers during the trade war miners in West Virginia B. Fiscal condition are almost allred states is their labor being exploited 43 percent of non-college-educated African Americanssome million. ; t in fact poorer than the blue states seem to get welfare... Are black or Hispanic, and those coal miners in West Virginia ( fourth-most... Trade war make the list of states that receive the least in total funding $ 12.46 billion mainstream. You show US the way, West Virginia come in next with a GDP of $ 2.35.... Income, Social Security and Medicare tax and West government jobs unemployment, are overwhelmingly.! Out of the most important factors is the case % welfare recipients voting democrat married couple with moderately! B ) have the most per capita benefits 25 %, Risk our money not Yours | get %!, residents of Kentucky get 3.78 dollars in federal income, Social Security and Medicare tax spend $... Vs. Democratic states function properly states subsidizing red states, one of the most in federal assistance of... Inc. | all Rights Reserved $ 19,406 states without bloated taxes, residents of get! In blue states mismanage money 100,000 per year in why do red states receive more welfare taxes spends more the population of Republican states Democratic.
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