As these programs expand and become more generous, the gap. Share of Recipients of each program that self-identified as supporters of Republican party in 2004-2007 Maxwell Poll: Gov. . Against a national average of $1,935 in intergovernmental spending per American, red states receive just $1,879. (The fifth is New Mexico, which has turned blue.) But where does the buck stop? Please note the Krugman data from NYTs included federal welfare payments co-mingled with federal contributary retirement program payments (Social Security and Medicare), which are required for career employed people, not Moochers. 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. In particular, according to the study, immigrants receive more cash, food . These cookies do not store any personal information. Download the associated excel file and see for yourself. As expected, the poorest performing states are generally the highest taxed states. While fiction can certainly be fun, most intelligent people find reality to be even more compelling. Out of the ten states leading in the most funding per resident, four are red. Would you like to learn the difference between donor and subsidized states? New York is the second state with the most Medicaid users. 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. Those arguing that blue states are the ones bailing out red states point to the federal balance of payment ratios, or federal tax dollars collected compared to federal money received, on a state-by-state basis. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. 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? Texas and Virginia get the most funding in federal contracts of respective $72 billion and $54.8 billion. Some US states have a low federal dependency and pay more in federal taxes than the amount they receive in government aid. One of the reasons you hear people bitch about student loan forgiveness issome people save, do without, then scrimp to put their kids through college. In fact, most high-tax states send more money to Washington than they get back in federal spending. Box 18438 | Minneapolis, MN 55418 | 612.455.6950. Many Mississippians receiving federal assistance would not be considered poor compared to their states cost of living, while many Hawaiians not receiving federal assistance may be considered poor because of how expensive Hawaii is compared to other states. Its also essential not to overlook the amount of federal aid per resident. Against a national average of 32.62 percent [of a States budget] being federally subsidized, the blue states received 30.80 percent. I would agree that northerners are pretty smart. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Read:Trumps tax reform appears to be giving more money back to Republican red states. (Rockefeller Institute of Government, World Population Review). Where I lived, the Republicans regularly had meetings and studied the constitution and I am not talking about a few people showing up, it was sometimes 100. Then they see their neighbor, new car every 2 years, vacations, eat out, new fashionable clothes.and then borrow to send kids to college. However, these two are also leading tax donor states, so they contribute as much as they take. And the five states with the lowest . Krugman reports no individual level data, so let me. 'Poor states receive more federal funding through Medicaid' WalletHub analyst Jill Gonzalez explained that "federal funding as a percentage of state revenue was calculated as states'. The article noted that of 20 States that receive more funding from the federal government than they pay in, 16 are Red States. 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. But, you know: Tough love. Statistical differences in federal income taxation and welfare policy is not a bailout. Does this surprise anyone? But the mega-finding, at least to my eyes, is that the big beneficiaries of this net transfer flows to red states (where more poor people live), while a significantly disproportionate share of the tax burden falls on blue states because thats where more rich people live. Wyoming gets the least in total funding $12.46 billion. Townhall.com is the leading source for conservative news and political commentary and analysis. This graphic is extremely misleading. 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. Texas is one of the exceptions. Red state budgets averaged 35.75 percent federal money. The red states aren't in fact poorer than the blue states. Please do not mislead the reader with statistics without sample sizes not explicitly depicted. 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. Residents of the 10 states Gallup ranks as most conservative received 21.2 percent of their income in government transfers, while the number for the 10 most liberal states was only 17.1 percent. SNAP is the largest program of all and has been for a long time, according to welfare statistics by year, with an average of 40 million people using it each month in 2020. The future of government spending is coming into focus as the 2020 elections approach. 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. (US Government Spending, Pew Trusts, World Population Review, Medicaid.gov, Saving to Invest, FAS). Only 1.4% of the workers in both Michigan and Minnesota work for the government, while the share in Wisconsin is 1.2%. Therefore, blue states are bailing out red states or so they say. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. For example, 50% of 10 people is 5, while 25% of 20 people is also 5. Plus, federal means-tested eligibility does not control for differences in cost of living between states. 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. 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. Matt Palumbo, writing at The Dan Bongino Show, found that even if red states receive more in federal welfare, it . 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 states including our own Minnesota in fifth place. To republish, copy the HTML at right, which includes our tracking pixel, all paragraph styles and hyperlinks, the author byline and credit to MinnPost. 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. The blue states would surely be happy enough to have those areas as dependencies How Much GDP Do the Red States Produce? In order to find out exactly how big the difference in federal dependence is from state to state, WalletHub compared the 50 states in terms of three key metrics. Our economic balloon is soaring: Will it see a hard or soft landing? And, wouldnt you know it, one of the worst offenders is Kentucky the state represented in the Senate by Majority Leader Mitch McConnell, a Republican. The blue staters, as always, are just rolling over and taking it. And taxpayers in blue states would save, on net, gazillions in tax dollars. Email him at eblack@minnpost.com. But as we know, states do not vote, individuals do. There is only a paradox if Republican voters receive welfare at above average rates while voting against it. New Mexico (B), Louisiana (R), and West Virginia (R) have the most food stamps recipients per capita. Brett Arends is an award-winning financial writer with many years experience writing about markets, economics and personal finance. Blue states, however, underperformed in other aspects. It appears that once more common sense is right and the impression left by the New York Times wrong. A lot of the blue states were already in fiscal trouble before COVID-19. Its like turkeys campaigning for Thanksgiving. California tops the list of states that receive the most federal aid with funding of $726.51 billion. The getters can be broken down into two categories: those with both high incomes and high levels of federal spending, and those with low incomes and high federal spending. You have to keep in mind that the Federal government spends more. 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. Publish date: Jun 25, 2020 7:00 AM EDT. Connecticut receives 1.29 dollars in federal aid for every dollar paid in taxes. 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You cant call for soaking the rich while complaining at the same time that they are paying more in taxes. He portrays Republicans as Moochers who are either hypocritical or too stupid to know their own best interest. Wyoming and Utah have the lowest number of SNAP recipients per capita or 4,442 and 5,134, respectively. Massachusetts and Washington have the highest weekly unemployment benefits of $974 and $929, respectively. Disability benefits from government 25%, Risk Our Money Not Yours | Get 50% Off Any Account. 9). Certain state leaders, including New York Gov. 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. You can also learn about all our free newsletter options. The Maxwell Poll has detailed information about welfare use. So, we will look at each for a full picture of how much and in what way US states depend on government money. The states with the highest personal income per capita are Connecticut, Massachusetts, New York and New Jersey. The other side of balance-of-payment ratios is federal spending. Wyoming and Vermont get only $6.6 billion and $7.4 billion in government grants, once again at the bottom. 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. Is it because of welfare beneficiaries and conservative policies not raising enough revenue? Content Summary. 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. Follow him on Twitter@Skip_Estes. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. But federal balance of payment ratios are not as indicative as pundits think they are. Yes, there are some idiots, but they are on both sides. North Dakota . There is no single aspect or figure to quantify that. So in aggregate, the federal government transfers wealth from the blue states to the red states. Pumping federal cash into spendthrift states to rescue them from underwater pensions and backlogged debt service is. Blue states get considerably more, at $2,124 per resident. The American government is projected to spend approximately $9.32 trillion in 2022 welfare programs. New York. 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