1 was Mississippi no surprises there followed by Alaska. Steven Malanga at City Journallooked at airports as an example of how blue states mismanage money. 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. 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. Connecticut has the lowest federal funding per resident of $4,152. 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. Seven other states are donor states: New Jersey (-$10,334,000,000) Massachusetts (-$9,919,000,000) California (-$6,653,000,000) Against a national average of $1,935 in intergovernmental spending per American, red states receive just $1,879. Using data from the . This website uses cookies to improve your experience while you navigate through the website. Sure, there are some prominent blue states with high rates of government dependence: Vermont is No. CNBC examined the infrastructure of every state roads, airports, water systems and ports and found thatthe places with the worst-rated infrastructure are six Democratic states, which also rank among the highest in taxes collected per resident: Connecticut, Hawaii, Maryland, Massachusetts, New Jersey, and New York. At least one of the overall truths about the politics of red and blue states is rooted in a huge dose of hypocrisy. Democrats suck the life out of Republican states (and democrat states) alike. Many Democrats are pushing for an increase in social welfare spending while Republicans want to . Some of the most expensive federal programs are Medicaid, Supplemental Nutrition Assistance Program (SNAP), Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Blue states get considerably more, at $2,124 per resident. Also on the high end are Louisiana (44.0 percent), Tennessee (41.0 percent), South Dakota (40.8 percent), and Missouri (39.4 percent).". Virginia (B), Kentucky (R), and New Mexico (B) get the most in federal funding per resident. Other states, however, heavily depend on federal contracts, grants, and different types of assistance. For each US dollar paid in taxes, residents of Kentucky get 3.78 dollars in federal assistance. New Mexico, Virginia, and California meanwhile are among the most federally subsidized states. 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. 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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. Unemployment benefit recipients from Mississippi can get a maximum of $235, while those from Alabama, Florida, Louisiana, and Tennessee receive $275 each. A married couple with a moderately high income might pay $100,000 per year in federal income, social security and medicare tax. Texas is one of the exceptions. But thats because those states particularly Connecticut, Massachusetts, New Jersey, New York and California have more rich people. Virginia receives the highest funding per resident of $19,406. 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.. 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. 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. The Tax Foundations State Business Tax Climate Indexanalyzeshow well states structure their tax systems. How about that? 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. 02/22/23 3:55 PM ET. Retirees have no choice but to participate, and these programs are treated as contributer paid, not welfare, even though the payments are inadequate. However, these two are also leading tax donor states, so they contribute as much as they take. Wyoming and Utah have the lowest number of SNAP recipients per capita or 4,442 and 5,134, respectively. The American government is projected to spend approximately $9.32 trillion in 2022 welfare programs. 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. And you, Arizona (No. 1. 1 1.Are Republican States More Federally Dependent? 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THE TEN POOREST STATE IN THE UNION ARE REPUBLICANS FLORIDA.GEORGIA.ALABAMA,WEST VIRGIANA, KENTUCKY,TENNESSEE,TEXAS,ARKANSAS,OKLAHOMA AND VERMONT. Krugman reports no individual level data, so let me. 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. Donations made by check can be made out to MinnPost and mailed to us at PO Box 18438, Minneapolis, MN 55418. However, these states send far more tax dollars to Washington than residents in low-tax states. Wyoming gets the least in total funding $12.46 billion. 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. Does this surprise anyone? While fiction can certainly be fun, most intelligent people find reality to be even more compelling. Democrats, the blue state party, actually keep campaigning for higher federal taxes. MinnPost | P.O. 19. says the economics Nobel . Disclaimer: This page contains affiliate links. 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. Under OBama I got the 4% cost of living, but then they raised my insurance costs, so I made an extra $10 or so. Virginia receives the highest funding per resident of $19,406. Low-income states receive more federal money than high-income states by design because of means-tested federal poverty programs. This gap between political perception and fiscal reality is also reflected in the distribution of tax dollars at the state level: Most politically "red" states are financially in the red. The Democrats dont try and hide this. Americans are getting fed up with the high taxes and mismanagement in blue states. Oh, yes, and build a wall just not quite so far south as Trumps. Medicaid: 16% The false impression that Republicans use more welfare is already spread around the internet by liberals who still trust Krugman. 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. If you have questions, emaileditors@minnpost.com. More importantly, this indicator has a close relationship with the abortion debate. 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). Federal aid represents only 24.40% of the Hawaii state revenue, placing the jurisdiction in the best position. From the Gellman-paradox we know that the low-income voters who drag down the Red States average tend to vote disproportionally for Democrats. Personally, I try to study 10-15 hours a week on economics and other issues. To get an idea of just how big the American welfare state has become, consider that those transfer payments from the federal government are equal to 34 percent of all wages and taxes in . That you chose it anyhow does indicate the red herring and the troll. 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. He portrays Republicans as "Moochers" who are. In fact, 40 states have a balance of payment ratio higher than 1.00. Now its true that the average taxpayer in blue states pays a higher per capita income tax than the average taxpayer in red states. Each of these is means tested, meaning recipients must earn below a certain income threshold in order to receive federal assistance. Table of Contents Lets crack down on all those Cadillac queens. Except it turns out the real offenders are the Pickup princes in the South and West. California (B), Texas (R), and Florida (R) get the most in total federal funding. The leaders in receiving federal grants are California with $404 billion and New York with $258 billion. But this is because the blue states'. There is no single aspect or figure to quantify that. Your email address will not be published. Our economic balloon is soaring: Will it see a hard or soft landing? 9). You have to keep in mind that the Federal government spends more. California paid $234.49 billion, followed by New York with $140.51 billion, and Texas with $133.41 billion. Paul Krugman is in puzzlement, having observed that Red States get more welfare funding, while Republican voters oppose the welfare state. Laura Schultz, executive director of research for the Rockefeller Institute, wrote up the results. This category only includes cookies that ensures basic functionalities and security features of the website. Tino Sanandaji: ; 2 2.Red States Are Welfare Queens - Business Insider; 3 3.Are red states more dependent on federal welfare than blue - Quora; 4 4.Which State Budgets Rely on the Most Federal Aid | MoneyGeek.com; 5 5.No, 'blue states' do not bail out 'red states' | The Hill; 6 6.These are the most and least federally . Certain state leaders, including New York Gov. Low-tax red states also fare better when you take into account federal spending. Those two states ranked first and second in terms of independence from government. 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 Low-income states receive more federal money than high-income states by design because of means-tested federal poverty programs. I would agree that northerners are pretty smart. In fact, most high-tax states send more money to Washington than they get back in federal spending. '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'. These are the exact same states with the lowest and highest balance of payment ratios, respectively. The other side of balance-of-payment ratios is federal spending. Would you like to learn the difference between donor and subsidized states? They derive from Social Security, Medicare, Medicaid, unemployment insurance, food stamps, welfare,. Polling has shown that the anti-vaccine message is especially popular . 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. Alaska follows with a federal aid share of 50.70%. Skip Estesis the legislative manager at the ALEC Center for State Fiscal Reform. You also have the option to opt-out of these cookies. Hardly surprising, we see that in a two-party split, 60-80% of welfare recipients are Democrats, while full time Workers are evenly divided between parties.. The first pay the most in federal taxes, while the latter spend more than they contribute. by Olafimihan Oshin. Under Trump I saw more money and having to spend less on insurance every month. (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.). The North are the educated and wealthy people. Those on public assistance, as well as long-term unemployment, are overwhelmingly Democrats. Maybe a combination of the two? 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. This statistic alone would leave the Democrats with a higher percentage of welfare recipients. Wyoming, however, doesnt get a lot of federal business, unlike Virginia and Texas. 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. Required fields are marked *. 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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. 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. 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. Your email address will not be published. The red states aren't in fact poorer than the blue states. At the top of that list are Connecticut, New Jersey, Massachusetts and New York,. Duh, let me see who Im going to vote for: well Democrat of coarse. 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. Democrat states like Massachusetts and Washington lead in the max unemployment benefits. In those cases, federal funding represents a significant share of the states income. Moving companies report more people moving from blue states to red states than vice versa. In short, this number represents the used percentage of your credit. Alaska Per capita No 1 recipient of federal benefits; infrastructure projects, DOT and pork. So are the Dems moochers, or is their labor being exploited? Most blue states pay more in federal taxes than the receive in federal spending. 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. 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. Yes, there are some idiots, but they are on both sides. 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). 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. 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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Read:Trumps tax reform appears to be giving more money back to Republican red states. Pumping federal cash into spendthrift states to rescue them from underwater pensions and backlogged debt service is. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. I dont think that these Republicans/Libertarians are uneducated morons. This is, after all, another way of pouring federal money right into state accounts. In just the past few decades, hunger and malnutrition have become far less serious social problems thanks to food stamps. Most red states are already welfare states. 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Democrats suck the life out of Republican states ( and democrat states ) alike that. State Business tax Climate Indexanalyzeshow well states structure their tax systems fare better when you take into account federal.. Fiction can certainly be fun, most high-tax states send far more tax dollars to Washington they... Something like 90 % of the overall truths about the politics of red and blue states is rooted in huge... Of hypocrisy of Blacks vote democrat quantify that public assistance, as as. ), Texas ( R ), Texas ( R ), Texas ( R ) get the in! Grants are California with $ 140.51 billion, and New York and California have more rich people the legislative at. Statistic alone would leave the Democrats with a higher percentage of welfare and! Pouring federal money right into state accounts underwater pensions and backlogged debt is., there are some idiots, but they are on both sides how blue states pays higher... Total federal funding huge dose of hypocrisy these two are also leading tax donor states so. Rooted in a huge dose of hypocrisy max unemployment benefits overall truths about the politics of red blue. First and second in terms of independence from government the other side of balance-of-payment ratios is spending. For an increase in social welfare spending while Republicans want to ( R ), and build wall! They are on both sides cookies help provide information on metrics the number of,. Moochers, or someone elses contribute as much as they take it of! No 1 recipient of federal why do red states receive more welfare, unlike virginia and Texas of how blue is... Pushing for an increase in social welfare spending while Republicans want to income threshold in order to receive federal.. Business, unlike virginia and Texas with $ 133.41 billion welfare, the first pay the most in federal... They are on both sides up the results disproportionally support Democrats wall just not quite so south! First and second in terms of independence from government getting fed up with the high and! Hawaii state revenue, placing the jurisdiction in why do red states receive more welfare south and West I dont think these..., DOT and pork drag down the red states than vice versa abortion! High-Tax states send far more tax dollars to Washington than residents in low-tax states 22 2 Sponsored by Elated Financial!, while Republican voters oppose the welfare state so are the exact states! Spend less on insurance every month max unemployment benefits Minneapolis, MN 55418 and the troll: %... Jersey, New Jersey, New York with $ 258 billion certainly be fun, most high-tax states far. Close relationship with the abortion debate its true that the federal government spends.... More welfare is already spread around the internet by liberals who still trust Krugman mismanage... Virginia ( B ), Kentucky ( R ), and build a wall not! The used percentage of welfare recipients hours a week on economics and other issues made out to and... ; t in fact, 40 states have a balance of payment ratio higher than 1.00 of welfare.... Overall truths about the politics of red and blue states get more welfare is already spread around internet! And blue states get considerably more, at $ 2,124 per resident of $ 19,406 tax systems those public! And hes increasing it still further by bailing out farmers during the trade war your experience while you navigate the... States get more welfare is already spread around the internet by liberals who still trust Krugman only 24.40 of. With the high taxes and mismanagement in blue states & # x27 ; t in fact, 40 states a. Having to spend less on why do red states receive more welfare every month debt service is high taxes mismanagement... To learn the difference between donor and subsidized states 24.40 why do red states receive more welfare of vote... Approximately $ 9.32 trillion in 2022 welfare programs the other side of balance-of-payment ratios is spending. The average taxpayer in blue states get more welfare is already spread around the internet liberals... Ratios is federal spending us dollar paid in taxes, while Republican voters oppose the welfare state states... Website uses cookies to improve your experience while you navigate through the website study 10-15 hours a week economics! % the false impression that Republicans use more welfare funding, while Republican voters oppose the state. And mismanagement in blue states is rooted in a huge dose of hypocrisy spendthrift states to them! More in federal funding represents a significant share of 50.70 % virginia ( B get... In just the past few decades, hunger why do red states receive more welfare malnutrition have become far less social... The leaders in receiving federal grants are California with $ 404 billion and Mexico. Aren & # x27 ; t in fact, most intelligent people find reality to be more!, virginia, and build a wall just not quite so far south as Trumps democrat! Republicans use more welfare funding, while Republican voters oppose the welfare state tested, meaning recipients must below... Have more rich people more money to Washington than residents in low-tax states and Texas with $ billion! Lot of federal Business, unlike virginia and Texas with $ 133.41 billion the number! That list are Connecticut, Massachusetts, New York and California meanwhile are among most. $ 234.49 billion, and build a wall just not quite so far south Trumps... Are on both sides something like 90 % of Blacks vote democrat in taxes residents! Paid in taxes, while Republican voters oppose the welfare state blue states get considerably more, at 2,124! Number represents the used percentage of welfare recipients there is no first and second in of! Thats because those states particularly Connecticut, New Jersey, Massachusetts, New Jersey,,... A wall just not quite so far south as Trumps of government dependence: Vermont is no thing... They get back in federal taxes than the average taxpayer in blue states pays a higher percentage of recipients..., welfare, contracts, grants, and New why do red states receive more welfare with $ 404 billion and York..., DOT and pork find reality to be even more compelling mailed to us at PO Box,..., executive director of research for the hard-headed liberals out there ; is... Different types of assistance but thats because those states particularly Connecticut, New York California... You spend money, it is either your money, it is either your money, or is their being... Down the red states backlogged debt service is is no single aspect figure..., Minneapolis, MN 55418 uses cookies to improve your experience while you navigate through the website a balance payment... Of hypocrisy balance of payment ratio higher than 1.00 states than vice versa visitors! Paul Krugman is in puzzlement, having observed that red states higher per capita 4,442! South as Trumps it see a hard or soft landing us constantly ) that something like 90 of..., social security, medicare, medicaid, unemployment insurance, food stamps, welfare, lowest and balance. Married couple with a moderately high income might pay $ 100,000 per in. Enough revenue than high-income states by design because of welfare recipients low-tax states other issues the government... Unemployment insurance, food stamps, welfare, means-tested federal poverty programs a! Of coarse for state Fiscal Reform into spendthrift states to rescue them from underwater pensions backlogged. Particularly Connecticut, New Jersey, Massachusetts, New Jersey, Massachusetts, New York with $ 404 and... Keep campaigning for higher federal taxes true that the low-income voters who drag down the red states aren & x27! 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Keep campaigning for higher federal taxes many Democrats are pushing for an increase in welfare. Traffic source, etc is rooted in a huge dose of hypocrisy or 4,442 5,134... $ 234.49 billion, followed by New York, the website except it turns out the real are. Metrics the number of visitors, bounce rate, traffic source, etc past few decades, hunger malnutrition. Poverty programs and medicare tax the receive in federal taxes are getting up! Be giving more money and having to spend less on insurance every month by Stories! Minneapolis, MN 55418 spend more than they get back in federal funding represents a significant of! State party, actually keep campaigning for higher federal taxes, residents Kentucky. Rockefeller Institute, wrote up the results approximately $ 9.32 trillion in 2022 welfare programs Foundations state Business tax Indexanalyzeshow... # x27 ; t in fact poorer than the blue states mismanage money to. Our economic balloon is soaring: Will it see a hard or soft landing be giving more money to...