Just how does your state compare in terms of their reliance on federal funding. Do you know how much your state receives back as a return on its
federal income-tax investment.
Wallethub does a really good job collecting all this information and breaking it down for us. This is the updated 2017 information.
2017 PROPERTY TAXES BY STATE
Source: WalletHub
2017’s States with the Best & Worst Taxpayer Return On Investment
Source: WalletHub
2017’s Most & Least Federally Dependent States
Source: WalletHub
2017's Most Federally Dependent States
Source: WalletHub
Editor's Note: As I reviewed the statistics I was a little perplexed that California did not show to be taking a larger portion of their tax dollars back considering the current condition in Los Angeles and the surrounding area. Then I noticed their ranking in the nation for property taxes and that explains a great deal.
Los Angeles is the homeless capital of the nation, with more than 58,000 people living on the streets. Among a list of reasons why addressing this issue should be a top priority is it is having a major impact on water pollution in LA. This is mostly within a 50 block area and this governor wishes his state to be a Sanctuary State. Who is going to feed, clothe and house them?
Skid Row is home to nearly 18,000 (of which 5,000 are living on the streets), making it the highest concentration of homeless people in the country.
Los Angeles is the homeless capital of the nation, with more than 58,000 people living on the streets. Among a list of reasons why addressing this issue should be a top priority is it is having a major impact on water pollution in LA. This is mostly within a 50 block area and this governor wishes his state to be a Sanctuary State. Who is going to feed, clothe and house them?
Skid Row is home to nearly 18,000 (of which 5,000 are living on the streets), making it the highest concentration of homeless people in the country.
As you look only at the chart, you will see how much the federal government spends per person in each state compared with the amount its citizens pay in federal income taxes. Some states stand out such as South Carolina which as of 2015 received $7.87 back from Washington for every $1 its citizens paid in federal tax. This bar chart reveals some really sharp discrepancies among states. On the other side of this group, folks in 14 states, including Delaware, Minnesota, Illinois, Nebraska, and Ohio, get back less than $1 for each $1 they spend in taxes.
It’s not just that some states are getting way more in return for their federal tax dollars, but the disproportionate amount of federal aid that some states receive allows them to keep their own taxes artificially low. |
Part of the explanation for why southern states dominate the “most dependent” category is historical. During the many decades in the 20th century when the South was solidly Democratic, its congressional representatives in both the House and the Senate, enjoying great seniority, came to hold leadership positions on powerful committees, which they used to send federal dollars back to their home states in the form of contracts, projects, installations.
Another part of the explanation is easier to discern. The reddest states on that map at the top—Mississippi, Alabama, Louisiana, New Mexico, Maine—have exceptionally high poverty rates and thus receive disproportionately large shares of federal dollars. Through a variety of social programs, the federal government disburses hundreds of billions of dollars each year to maintain a “safety net” intended to help the neediest among us. Consider, for example, the percentage of each state’s residents who get “food stamps” through the federal government’s SNAP program. This chart tells the story.
The person from where I received this information tells us that it is mostly the RED states which benefit the most on what they receive in turn and that is true. However, he would have you believe it is because they are Republican states and not Democratic states when party itself has nothing to do with it. The truth is, the RED states are better states to live in and if I was poor and needed help back, I would certainly chose one that had a better standard of living in general.
"The Atlantic", John Tierney |
Sources used by Wallethub include: Internal Revenue Service, U.S. Census Bureau, USAspending.gov, Bureau of Labor Statistics and Governing.com.