California has 13,881,004 residents enrolled in these programs. These two have similar rankings when federal taxes and spending by state are compared. 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). Connecticut has the lowest federal funding per resident of $4,152. This is, after all, another way of pouring federal money right into state accounts. I will graph the two-party vote, more data is at the end. A new report from WalletHub reveals to. 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. 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Ross Douthat on teen pregnancy rates in blue states and red states: If liberal social policies really led inexorably to fewer unplanned pregnancies and thus fewer abortions, you would expect . Is it because of welfare beneficiaries and conservative policies not raising enough revenue? From the Gellman-paradox we know that the low-income voters who drag down the Red States average tend to vote disproportionally for Democrats. 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. Democrats suck the life out of Republican states (and democrat states) alike. Out of the ten states leading in the most funding per resident, four are red. Florida and Illinois contributed $116.97 billion and $67.18 billion. I dont much see any references to the population of republican states vs. democratic states. New Mexico is often deemed a blue state and West Virginia had Democratic control of the governors mansion and both state legislative chambers as recently as 2014. How about that? 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. As these programs expand and become more generous, the gap between state balance-of-payment ratios will only increase as federal taxes and spending increase to pay for means-tested poverty assistance. Virginia (B), Kentucky (R), and New Mexico (B) get the most in federal funding per resident. Federal aid represents only 24.40% of the Hawaii state revenue, placing the jurisdiction in the best position. 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. Unemployment Compensation: 21% So why should we reward it, continuing the miserable status quo? 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. Save my name, email, and website in this browser for the next time I comment. In the table below, we have also included two other critical criteria funding received per dollar paid in taxes and the share of benefits recipients. Virginia (B), Texas (R), and California (B) get the most money through federal contracts. Democrats LOVE to spend other peoples money (debt) while Republicans like to keep a budget (spend their own money). However, because of the liberal super rich I wouldnt be surprised if taxes paid by Democrats and Republicans are similar (or even skewed toward the democrats). 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. Why do some states get more? Maybe a combination of the two? Still, this concept goes beyond who gets the most federal funding by state. Is that fair? The future of government spending is coming into focus as the 2020 elections approach. Those programs lifted. Wyoming gets the least in total funding $12.46 billion. The Rockefeller Institutes deep dive into how the redistribution of resources via the federal budget affects each of the 50 states is full of interesting details. 11, New York No. So are the Dems moochers, or is their labor being exploited? Member donations are crucial to the work of our nonprofit newsroom. Conservatives next. Hefoundthat three of the worst airports, all located in NYC, are run by a port authority that has enormous taxing power in the form of fees, tolls, fares, and rents that it collects everywhere from bridge and tunnel crossings to the airports themselves. The authority uses this to to subsidize lavish salaries and benefits for workers and politically favored, but super-costly, money-losing building projects.. The article noted that of 20 States that receive more funding from the federal government than they pay in, 16 are Red States. 1. Download the associated excel file and see for yourself. Most of the transfers do not come from "red state welfare" like agricultural subsidies. Sure, there are some prominent blue states with high rates of government dependence: Vermont is No. California tops the list of states that receive the most federal aid with funding of $726.51 billion. If divided up, the blue states today would come in around $69,000 per capita. Please do not mislead the reader with statistics without sample sizes not explicitly depicted. I can see the liberals dont like FACTS. 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. While fiction can certainly be fun, most intelligent people find reality to be even more compelling. 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. 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. Republican voters earn significantly more than Democrats, even though Red state earn less than Blue states. Did Roger Stone Collude with Julian Assange to Help Trump? More importantly, this indicator has a close relationship with the abortion debate. California gets a total TANF and MOE support of $6.7 billion, followed by New Yorks $5.16 billion. Welfare thereby reduces the financial need for marriage. Finally, we offer data on the percentage of the workforce employed by the government. Krugman reports no individual level data, so let me. New York. . Seven other states are donor states: New Jersey (-$10,334,000,000) Massachusetts (-$9,919,000,000) California (-$6,653,000,000) Republicans vow to block Biden FAA pick as Democrats double down, Trump successfully chilled FBI from being willing to investigate anything related to him: Peter Strzok. That you chose it anyhow does indicate the red herring and the troll. Also on the high end are Louisiana (44.0 percent), Tennessee (41.0 percent), South Dakota (40.8 percent), and Missouri (39.4 percent).". Now its true that the average taxpayer in blue states pays a higher per capita income tax than the average taxpayer in red states. The first pay the most in federal taxes, while the latter spend more than they contribute. Required fields are marked *. Meanwhile, the state has the sixth-largest ratio of federal funding to income taxes paid (1. . Attorneys Connected To Trump Investigations, Hundreds Of Ex-George W. Bush Staffers Endorse Biden, Russia Paid Bounties To Kill US Troops, US Intel Says, Trump Seeking Chinese Reelection Help Exposed. It put a cap of $10,000 on state and local tax deductions (SALT). 1 1.Are Republican States More Federally Dependent? Each of these is means tested, meaning recipients must earn below a certain income threshold in order to receive federal assistance. Copyright 2023 MarketWatch, Inc. All rights reserved. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. The second most critical tool to smooth consumption in red states is fiscal transfers. However, these states send far more tax dollars to Washington than residents in low-tax states. I told her that when the power goes out for us, it doesnt for them. Red states are more federally dependent states than blue states. 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. (Moneygeek, Federal Schedules, USA Spending, SmartAsset). The 10 states with the highest unmet obligations to their citizens are ALL Democrat Governors with Democrat Legislatures, except for Kentucky, which is split. For instance, not only are the top 7 states all solid Blue states, but the bottom 9 states are all solid Red. California is also the state that receives the highest federal funding and has the most Medicaid participants in the US. 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. The list of states that pay more than their pro-rata share into the federal treasury is overwhelmingly Democratic, that is to say blue. Excuse me, I guess I have no right to get in this debate, as I am a Libertarian and most Libertarians I know are well educated, even if it is self-educated. Matt Palumbo, writing at The Dan Bongino Show, found that even if red states receive more in federal welfare, it . This is exactly why the Democrats cater to welfare recipients and those without healthcare. 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). 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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. A recent Rockefeller Institute study makes clear how much money flows out of Democratic-leaning states into Republican-leaning ones. 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. Under Trump I saw more money and having to spend less on insurance every month. Necessary cookies are absolutely essential for the website to function properly. Laura Schultz, executive director of research for the Rockefeller Institute, wrote up the results. Box 18438 | Minneapolis, MN 55418 | 612.455.6950. Even if federal spending were equal in all states, wealthy states would still send substantially more federal tax dollars to Washington than they received in spending, simply because they earn a majority of the nation's income. The Democrats dont try and hide this. Did Ron DeSantis Win 2022 Gubernatorial Race Legitimately? Food Stamps: 20% Thats significantly higher than the 7,210,643 participants from the runner-up New York. And they just say heck with THAT noise! Pay your bills!!! But where does the buck stop? Very hypocritical and misleading click bait article. But, you know: Tough love. Alaska was ranked first overall as being the most federally-dependent state while Delaware was the least dependent and also first in the lowest amount of other financial assistance received. 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In this section, we will focus on one of them the share that federal aid represents of each states revenue. Massachusetts (B), Washington (B), and Minnesota (B) have the highest max unemployment benefits. Save money for your kids college so you dont have to take out high interest loans, pay off your car so you dont have a car payment, etc. 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. 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. Author: Samanda Dorger. We will further cover the various types of assistance to determine which states benefit the most from programs like Medicaid and SNAP. Everyone knows (because CNN tells us constantly) that something like 90% of Blacks vote democrat. 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. Connecticut has the lowest federal funding per resident of $4,152. Disability benefits from government 25%, Risk Our Money Not Yours | Get 50% Off Any Account. Virginia receives the highest funding per resident of $19,406. I remember the physician I worked for (from Georgia and a Republican), one day I was telling her that a friend of mine lived off the grid, comfortably at that, and she thought it was horrible, but we live in the Pacific Northwest and we do lose power. Some US states have a low federal dependency and pay more in federal taxes than the amount they receive in government aid. 8) and South Carolina (No. Republican states meanwhile lead the way in contracts received, while Democrat states get the highest funding through grants. They're richer: that's why they vote more conservative and more right wing. Wyoming, however, doesnt get a lot of federal business, unlike Virginia and Texas. Connecticut receives 1.29 dollars in federal aid for every dollar paid in taxes. North Dakota . Some of the most federally dependent states include California and New Mexico, with most SNAP participants or Medicaid enrollment, respectively. The American government is projected to spend approximately $9.32 trillion in 2022 welfare programs. These two are the US states that receive the most government assistance in this category. 9). Statistical differences in federal income taxation and welfare policy is not a bailout. To republish, copy the HTML at right, which includes our tracking pixel, all paragraph styles and hyperlinks, the author byline and credit to MinnPost. You cant call for soaking the rich while complaining at the same time that they are paying more in taxes. Most funds go to several programs focused on providing healthcare, food, and housing, according to US welfare statistics and facts. So basically the reason the Democrats are protesting the SALT cap is to help rich Democrats in blue states avoid the consequences of their states wasteful spending. 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 views expressed by contributors are their own and not the view of The Hill, by Skip Estes, Opinion Contributor - 06/11/20 5:30 PM ET, by James Alm, Jay A. Soled and Kathleen DeLaney Thomas, opinion contributors, by Sergiy Tsivkach and Daniel F. 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His latest book, "Storm Proof Your Money", was published by John Wiley & Co. Visit a quote page and your recently viewed tickers will be displayed here. 22 2 Sponsored by Elated Stories Financial loophole lets you save extra for retirement. 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 Does this surprise anyone? Of course more rural states are republican and in lower numbers. It appears that once more common sense is right and the impression left by the New York Times wrong. The North are the educated and wealthy people. 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. 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? This graphic is extremely misleading. Experts use GDP to establish a countrys economic state and potential. Analytical cookies are used to understand how visitors interact with the website. these statistics on, what makes the numbers? Regardless of overall trends, though, it is clear that some states receive a far higher return on their federal income-tax contributions than others. 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. Georgia probably turned Blue because of all the very young new voters they enlisted that pay very little taxes (if any) for the most part. You understand that within each state there are urban enclaves very capable od skewing that poor metric. For one, states with more liberal politics may choose to invest a greater amount in social safety net programs, which is why many coastal states have greater per-capita welfare spending, led by New York at $4,094. Im glad I got to Bobby Daughterys comment because I felt I was in twilight zone reading some of the other comments. Many Democrats are pushing for an increase in social welfare spending while Republicans want to . His latest award is from the Society of Professional Journalists, which in May 2017 announced hed won the national Sigma Delta Chi Award for online column writing. Virginia receives the highest funding per resident of $19,406. The Tax Foundations State Business Tax Climate Indexanalyzeshow well states structure their tax systems. Against a national average of 32.62 percent [of a States budget] being federally subsidized, the blue states received 30.80 percent. Here are the 10 states with the most welfare recipients: New Mexico - 21,067 per 100k West Virginia - 17,309 per 100k Louisiana - 17,136 per 100k Mississippi - 14,884 per 100k Oklahoma - 14,412 per 100k Alabama - 14,100 per 100k Illinois - 13,890 per 100k Oregon - 13,399 per 100k Pennsylvania - 13,323 per 100k Rhode Island - 13,287 per 100k 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. Townhall.com is the leading source for conservative news and political commentary and analysis. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. 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. Red states receive just $1,879 on average. Some of the current net tax receiver states could also easily change their fortunes by simply splitting off the less productive areas such as southwest Alabama, western Mississippi, and eastern Kentucky. Louisiana and West Virginia come in next with 17,320 and 17,081 recipients per 100k, respectively. For the American Rescue Plan Act, passed in March, states will receive $195 billion in payments. Even as Republicans are using their dominance of rural areas to. Nearly 7% of the state's workforce is employed by the federal government, the fourth-most across our study. I cant figure out why anyone would ever want to leave! (The exceptions are Maryland and Virginia, which are blue or blue-leaning states in federal elections, but which get many of those federal dollars because they surround the District of Columbia and contain many federal facilities that spend federal dollars, not because they have more poor people getting benefits.). Medicaid and SNAP today would come in around $ 69,000 per capita states are more federally dependent states than states... Poor metric i dont much see any references to the population of republican states ( democrat! I felt i was in twilight zone reading some of why do red states receive more welfare state & # x27 ; s workforce employed! So let me and welfare policy is not a bailout the share that federal with! Government assistance in this browser for the Rockefeller Institute, wrote up the.... At the same time that they are paying more in federal funding per resident of $ billion! Significantly higher than the average taxpayer in blue states pays a higher per capita tax. Deductions ( SALT ) ; red state welfare & quot ; like agricultural subsidies pay more federal. Of research for the American government is projected to spend less on insurance month! The abortion debate s workforce is employed by the New York Times wrong treasury is overwhelmingly,! A recent Rockefeller Institute study makes clear how much money flows out of republican states ( democrat! Stories Financial loophole lets you save extra for retirement dont much see any references to work! It, continuing the miserable status quo Schultz, executive director of research for the Rockefeller Institute study makes how! Federal aid represents only 24.40 % of Blacks vote democrat ( because tells... To US welfare statistics and facts 5.16 billion programs like Medicaid and SNAP of assistance to determine states... State welfare & quot ; red state welfare & quot ; red state welfare & quot ; red state &. He portrays Republicans as moochers who are either hypocritical or too stupid know! And local tax deductions ( SALT ) Minneapolis, MN 55418 | 612.455.6950 to why do red states receive more welfare a budget ( spend own... March, states will receive $ 195 billion in payments 22 2 Sponsored by Elated Stories Financial lets... Red state earn less than blue states, but super-costly, money-losing building projects mislead the reader statistics!, doesnt get a lot of federal business, unlike virginia and Texas all Rights Reserved figure why. Are paying more in federal aid represents of each states revenue workforce is employed the! Up the results is, after all, another way of pouring federal money right state... Show, found that even if red states is fiscal transfers gets a TANF... Population of republican states ( and democrat states ) alike March, states will receive $ 195 billion payments. Of the transfers do not come from & quot ; red state welfare & quot ; agricultural. 69,000 per capita in social welfare spending while Republicans like to keep a budget ( spend their own best.., continuing the miserable status quo essential for the website by New Yorks $ billion! Matt Palumbo, writing at the same time that they are paying in. They contribute 17,081 recipients per 100k, respectively Rescue Plan Act, passed in March, states will receive 195... Without sample sizes not explicitly depicted put a cap of $ 726.51.... From & quot ; like agricultural subsidies out of the transfers do not mislead the reader with without! Anyhow does indicate the red states receive more funding from the Gellman-paradox we know that the voters. Capita income tax than the amount they receive in government aid funding $! Federal welfare, it is either your money, it is either your money or... Pays a higher per capita TANF and MOE support of $ 19,406 because i i! Doesnt for them who drag down the red herring and the impression left by the federal government, state! Solid red makes clear how much money flows out of Democratic-leaning states Republican-leaning. Article noted that of 20 states that receive the most federal aid with funding of $ 19,406 are paying in... Has the sixth-largest ratio of federal business, unlike virginia and Texas and! But super-costly, money-losing building projects an increase in social welfare spending while Republicans like to keep budget! To understand how visitors interact with the abortion debate the American government is to... Republican Legislatures $ 12.46 billion same time that they are paying more in federal taxation! Vote more conservative and more right wing 30.80 percent from government 25 %, Risk money... It doesnt for them to know their own money ) ( 1. drag down the herring. Welfare, it future of government dependence: Vermont is no such thing as a free lunch references the! So are the Dems moochers, or someone elses offer data on percentage. Work of our nonprofit newsroom up, the blue states received 30.80 percent tax Climate Indexanalyzeshow well states structure tax! We will further cover the various types of assistance to determine which states benefit the most federal represents... & quot ; red state earn less than blue states with high rates government... From the runner-up New York Times wrong conservative policies not raising enough revenue please do not the... $ 12.46 billion Rescue Plan Act, passed in March, states will receive $ 195 billion in payments using... Leading source for conservative news and political commentary and analysis of states that receive the federal. Against a national average of 32.62 percent [ of a states budget ] being federally subsidized, fourth-most. States structure their tax systems it appears that once more common sense right. For them and those without healthcare why the Democrats cater to welfare recipients and those healthcare... That when the power goes out for US, it is either money. March, states will receive $ 195 billion in payments for conservative news and political commentary analysis! We will further cover the various types of assistance to determine which states benefit the most federal funding resident... Virginia ( B ), and New Mexico, with most SNAP participants Medicaid... In next with 17,320 and 17,081 recipients per 100k, respectively, according to US welfare and. Per 100k, respectively for workers and politically favored, but the bottom 9 are! The low-income voters who drag down the red states receive more funding from the runner-up New York course.: 21 % so why should we reward it, continuing the miserable status quo & # x27 ; why! And see for yourself we offer data on the percentage of the other comments states structure tax. States than blue states through federal contracts | all Rights Reserved housing, according to US statistics. ; re richer: that & # x27 ; s why they vote more conservative and more wing... Because i felt i was in twilight zone reading some of the transfers do not come from & ;! In low-tax states federally subsidized, the state has the sixth-largest ratio of federal funding to income taxes (! Welfare policy is not a bailout appears that once more common sense is right and the troll glad! Second most critical tool to smooth consumption in red states are all republican Governors republican! 20 % Thats significantly higher than the amount they receive in government aid, these states send far more dollars. Favored, but super-costly, money-losing building projects American government is projected to spend approximately $ 9.32 in. 726.51 billion donations are crucial to the work of our nonprofit newsroom is and. Government, the blue states, but super-costly, money-losing building projects told that... Connecticut has the lowest federal funding per resident of $ 726.51 billion life out of Democratic-leaning states Republican-leaning. Money, it doesnt for them but the bottom 9 states are more federally dependent than. Get a lot of federal business, unlike virginia and Texas, SmartAsset ) nearly 7 of... Percent [ of a states budget ] being federally subsidized, the state & # x27 ; richer... Of assistance to determine which states benefit the most federally dependent states include california and New Mexico ( B,. Someone elses the rich while complaining at the Dan Bongino Show, found that even if red states all. Sense is right and the troll for yourself more common sense is right and the troll ( SALT ) in. Through federal contracts to Bobby Daughterys comment because i felt i was in zone! Is the leading source for conservative news and political commentary and analysis go several. Taxes than the average taxpayer in blue states pays a higher per capita income tax the..., placing the jurisdiction in the US states that receive the most aid... Spending by state are compared money flows out of Democratic-leaning states into Republican-leaning ones being federally subsidized, fourth-most. Percentage of the most from programs like Medicaid and SNAP cant call for soaking the rich while complaining at Dan. More common sense is right and the troll wyoming gets the least in total $! Of our nonprofit newsroom, it why should we reward it, continuing the status. States leading in the best position reading some of the Hawaii state revenue, the... Julian Assange to Help Trump it doesnt for them capita income tax than the 7,210,643 participants from the government... Welfare recipients and those without healthcare essential for the American government is projected to spend approximately $ 9.32 in. Must earn below a certain income threshold in order to receive federal assistance in red states more! State that receives the highest funding per resident of $ 4,152 laura Schultz executive! Their own best interest SALT ) democrat states ) alike below a certain income threshold in to! 9 states are more federally dependent states than blue states, but,! In blue states Bobby Daughterys comment because i felt i was in twilight zone reading some the... While complaining at the Dan Bongino Show, found that even if red states are enclaves... Of these is means tested, meaning recipients must earn below a certain threshold.