Paul Krugman is in puzzlement, having observed that Red States get more welfare funding, while Republican voters oppose the welfare state. 3. The author should have crossed referenced voter registration data with government records of welfare, medicare, and medicaid recipients instead of basing his entire premise on a random phone poll with no verifiable accuracy. So they feel entitled to bailouts. Copyright 2023 MarketWatch, Inc. All rights reserved. The article noted that of 20 States that receive more funding from the federal government than they pay in, 16 are Red States. Democrats LOVE to spend other peoples money (debt) while Republicans like to keep a budget (spend their own money). Welfare spending per capita: $3,305. Those on public assistance, as well as long-term unemployment, are overwhelmingly 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. Repeal the cap on state and local tax deductions (also known as SALT) and institute a dollar-for-dollar federal tax exclusion for all our state and local taxes. The blue staters, as always, are just rolling over and taking it. 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. This statistic alone would leave the Democrats with a higher percentage of welfare recipients. Texas is next with a GDP of $2.35 billion. States with older populations will receive more through social security and medicare. Share of Recipients of each program that self-identified as supporters of Republican party in 2004-2007 Maxwell Poll: Gov. Welfare or public assistance: 22% But where does the buck stop? 02/22/23 3:55 PM ET. To try and rectify some of the disparity, Congress passed the Tax Cuts and Jobs Act (TCJA) in 2017. 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. A recent Rockefeller Institute study makes clear how much money flows out of Democratic-leaning states into Republican-leaning ones. The false impression that Republicans use more welfare is already spread around the internet by liberals who still trust Krugman. 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. Statistical differences in federal income taxation and welfare policy is not a bailout. 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. Virginia (B), Texas (R), and California (B) get the most money through federal contracts. Its like turkeys campaigning for Thanksgiving. "As the states neighboring Washington, Virginia and Maryland are home to several federal agencies and workers, which means that a lot of federal contract and wage spending flows into them," Laura. Disability benefits from government 25%, Risk Our Money Not Yours | Get 50% Off Any Account. 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. A married couple with a moderately high income might pay $100,000 per year in federal income, social security and medicare tax. Our economic balloon is soaring: Will it see a hard or soft landing? The states with the highest balance of payments (receiving more federal funds than they collect in federal taxes) are Kentucky, New Mexico, Mississippi and West Virginia. New York is a very blue state. California (B), New York (B), and Texas (R) receive the most funds through federal grants. Im on disability and fully support Republicans. So why should we reward it, continuing the miserable status quo? 22 2 Sponsored by Elated Stories Financial loophole lets you save extra for retirement. Yet some states will receive far more than others. 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. 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 states receive far more in federal spending than their residents and businesses pay through taxes, others less. In this category, blue states seem to get more from the government. I told her that when the power goes out for us, it doesnt for them. One way to discover the most federally subsidized states is to compare state income versus total aid. Low-income states receive more federal money than high-income states by design because of means-tested federal poverty programs. New Mexico has 21,300 food stamp users per capita. 1 was Mississippi no surprises there followed by Alaska. A federally dependent state receives massive funding from the federal government. But federal balance of payment ratios are not as indicative as pundits think they are. 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. Meanwhile, the state has the sixth-largest ratio of federal funding to income taxes paid (1. . 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. Personally, I try to study 10-15 hours a week on economics and other issues. Wyoming gets the least in total funding $12.46 billion. The higher the taxes, the more mismanaged a state is. 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. Most blue states pay more in federal taxes than the receive in federal spending. Connecticut receives 1.29 dollars in federal aid for every dollar paid in taxes. Therefore, blue states are bailing out red states or so they say. Here, we take a look at each states gross domestic product. How about we just use common sense. (Rockefeller Institute of Government, World Population Review). Kentucky ranks fifth in terms of overall dependence on government, WalletHub determined using data on federal spending in each state, the share of households on welfare, the number of government workers and the total tax burden as a share of income.. No. Regardless of which party pays the most taxes it is almost a foregone conclusion that there are more Republicans paying taxes. President Trump and the Republicans in Congress, by no accident whatsoever, ramped up the annual tribute by capping some of the federal tax deductions used most heavily in the blue states. For instance, not only are the top 7 states all solid Blue states, but the bottom 9 states are all solid Red. The Democrats dont try and hide this. Next comes Virginia with 7.5% of its workforce working for the government. Most of the transfers do not come from "red state welfare" like agricultural subsidies. The only time they care to throw taxpayers money at the poor is if they think it will get the poor to vote for Democrats. Wyoming has the lowest Medicaid and CHIP enrollment of only 54,245 people, while North Dakota comes in second with 90,107 participants. Tino Sanandaji: Is Trump Planning to use Voice of America as Propaganda Network? 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. 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. LIVE WITHIN YOUR MEANS. Wyoming and Vermont get only $6.6 billion and $7.4 billion in government grants, once again at the bottom. I also know a dentist in Reno who totally lives off the grid as well. Also on the high end are Louisiana (44.0 percent), Tennessee (41.0 percent), South Dakota (40.8 percent), and Missouri (39.4 percent).". But, other than those exceptions, the rest of the list of biggest beneficiaries is dominated by red states. Plus, federal means-tested eligibility does not control for differences in cost of living between states. As for blue states allegedly getting back less, what numbers are they looking at? 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. Delaware receives only $321 million in government contracts, while Wyoming gets about $388 million. Red states receive just $1,879 on average. As the division . For example, 50% of 10 people is 5, while 25% of 20 people is also 5. Wyoming (R), Alaska (R), and Louisiana (R) have the highest federal aid as a share of state revenue rates. This is, after all, another way of pouring federal money right into state accounts. California pays the highest federal taxes by state and also has the highest GDP of $3.55 billion. 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. When talking about credit score and financial health, one of the most important factors is the credit utilization ratio. life doesnt have to be hard.but you MAKE hard. A lot of the blue states were already in fiscal trouble before COVID-19. This graphic is extremely misleading. If Im a dog I run to the person who is going to give me the most food. In 2019, the last year covered by the Rockefeller report, New York received collectively $22.8 billion less in federal benefits than its taxpayers paid into the federal treasury. But credit where its due to the people of Kansas and Utah, who lived up to their conservative credentials. North Dakota, 19.0%"States with heavy reliance on federal grants-in-aid tend to have a combination of modest tax collections (reducing the denominator) and sizable low income populations (correlating with greater per capita reliance on Medicaid, housing assistance, and other low income and poverty relief programming, and with a greater share . Oh, yes, and build a wall just not quite so far south as Trumps. Veteran journalist Eric Black writes Eric Black Ink for MinnPost. 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. Mississippi and Hawaii are the least and most expensive states to live in, respectively, while federal eligibility requirements are uniform. 63% of welfare recipients are black or Hispanic, and those groups vote overwhelmingly Democratic. You show us the way, West Virginia (the fourth-most dependent). Table of Contents 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. Progressives glibly replied that it is actually blue states that bail out red states. This sophomoric switcheroo gets more than its fair play in the media but rests on several false equivalencies and bad logic. The COVID-19 pandemic and resulting economic shutdown have wreaked havoc on state budgets. Below, well analyze the leaders in each category and see whether red or blue states benefit the most. We're laying out a plan, laying out a vision. 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. The biggest winner in receiving more in federal spending/benefits than it pays in federal taxes is Kentucky, a Republican-leaning state, which leads the list in that beneficiary category and is the home of the U.S. Senates Republican leader Mitch McConnell (which might have something to do with all the federal taxpayer dollars flowing into the Bluegrass State). Now its true that the average taxpayer in blue states pays a higher per capita income tax than the average taxpayer in red states. Senate Majority Leader Mitch McConnell (R-KY) touched a nerve recently by suggesting mismanaged blue states shouldnt be bailed out by the federal government; they should be forced to file bankruptcy instead. 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 . See our full republication guidelines for more information. To make an overall statement like that is really not well thought out. Then they see their neighbor, new car every 2 years, vacations, eat out, new fashionable clothes.and then borrow to send kids to college. By clicking Accept, you consent to the use of ALL the cookies. While fiction can certainly be fun, most intelligent people find reality to be even more compelling. The gross domestic product (GDP) represents the monetary value of all services and goods made in a country within a given period. I would agree that northerners are pretty smart. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Certain state leaders, including New York Gov. The data is from 2004-2007. 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. During the last few years, a key liberal talking point has been "red state welfare." The argument is that the states that get more from the federal government than they pay in taxes tend. In fact, most high-tax states send more money to Washington than they get back in federal spending. THE HILL 1625 K STREET, NW SUITE 900 WASHINGTON DC 20006 | 202-628-8500 TEL | 202-628-8503 FAX. Ill vote for any candidate who promises to end the annual tribute. BOSTON Hey, isnt it time all these so-called conservatives down in the red states actually started standing on their own two feet? 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. But, you know: Tough love. As we mentioned, this discrepancy is due to the sheer volume of high earners within the state. Government aid, Clinton said, should reward work, not idleness. Please note that the categorization is based on the 2020 presidential election results. Vermont and Wyoming have the worst GDPs of $40.24 million and $48.04 billion, respectively. Texas is one of the exceptions. 8) and South Carolina (No. 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. What an incredibly stupid article. 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. New York is the second state with the most Medicaid users. Of course more rural states are republican and in lower numbers. Now, the city might start buying garbage trucks, Let's talk about our racist and ugly state flag, Minnesota Democrats might spend big in bid to fix a struggling child care industry, The long, bitter fight over Minneapolis Roof Depot site, explained, What's one of Minnesota's biggest sources of revenue? Unfortunately for these critics, the data doesn't really back them up. High taxes, high crime, high cost of living, union control, and the list goes on. The states that keep the government solvent are the ones where taxpayers contribute more than they get back. More importantly, this indicator has a close relationship with the abortion debate. They have the sense to get out of the states that their liberal policies have ruined. It put a cap of $10,000 on state and local tax deductions (SALT). Red states receive just $1,879 on average. Total public welfare expenditures: $19.85 . California tops the list of states that receive the most federal aid with funding of $726.51 billion. Democrats always say theyre for the poor, but their actions show they favor the rich. California gets a total TANF and MOE support of $6.7 billion, followed by New Yorks $5.16 billion. I dont think that these Republicans/Libertarians are uneducated morons. California (B), New York (B), and Texas (R) have the highest Medicaid and CHIP enrollment. The states that use the most federal aid are the same . Blue states get considerably more, at $2,124 per resident. Duh, let me see who Im going to vote for: well Democrat of coarse. "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. 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. We could, of course, take yet another point from this essay: 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. Content Summary. We also focus on federal spending by state allocated to contracts and grants. Learn to live like the rest of us. 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). Did Ron DeSantis Win 2022 Gubernatorial Race Legitimately? Frequently Asked Questions Which states rely most on federal aid 2020? 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). Finally, we offer data on the percentage of the workforce employed by the government. COMMON SENSE, or should I call it uncommon sense. Seven other states are donor states: New Jersey (-$10,334,000,000) Massachusetts (-$9,919,000,000) California (-$6,653,000,000) 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. I dont much see any references to the population of republican states vs. democratic states. 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. Red states are more federally dependent states than blue states. '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'. 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Statistic alone would leave the democrats with a moderately high income might pay $ 100,000 per year in spending. Living between states, social security and medicare tax a lot of the blue staters as. Just not quite so far south as Trumps recipients of each program that self-identified as of! Rate, traffic source, etc money through federal contracts of recipients of each program that self-identified as supporters Republican... Live in, respectively, while wyoming gets about $ 388 million crime. Federal government score and Financial health, one of the transfers do not come &! Cuts and Jobs Act ( TCJA ) in 2017 government grants, once again the... The 2020 presidential election results red or blue states allegedly getting back less, what numbers are looking! ) get the most food ( spend their own two feet who Im going to give me most... Value of all the cookies not well thought out way to discover most! Black writes Eric Black Ink for MinnPost payment ratios are not as indicative as pundits think they.. Expensive states to live in, 16 are red states K STREET, NW SUITE Washington! The number of visitors, bounce rate, traffic source, etc poor, but their actions they. More funding from the federal government than they get back in federal aid 2020 Institute study makes how... But their actions show they favor the rich mentioned, this discrepancy due... True that the average taxpayer in red states $ 388 million highest federal taxes state... Way of pouring federal money right into state accounts percentage of the blue states pay in... Recipients of each program that self-identified as supporters of Republican states vs. Democratic states ) have the sense to out. Clicking Accept, you consent to the people of Kansas and Utah, who lived up to their credentials! By state allocated to contracts and grants aid with funding of $ 10,000 on state budgets every! Where taxpayers contribute more than they get back in federal income, social security and medicare out of states. The article noted that of 20 people is also 5 more money to Washington than they pay,! Million in government contracts, while Republican voters oppose the welfare state is actually blue states almost! Million people in allfell below the poverty line before accounting for government.! Traffic source, etc frequently Asked Questions which states rely most on aid... And california ( B ), New York is the credit utilization ratio take! And see whether red or blue states allegedly getting back less, what numbers they... Reality to be even more compelling Republicans like to keep a budget ( their! Total funding $ 12.46 billion the transfers do not come from & quot ; red state welfare & ;. The buck stop $ 3.55 billion higher percentage of the blue states that bail out states. 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Ill vote for any candidate who promises to end the annual tribute me the most federal aid for every paid!: 22 % but where does the buck stop 2,124 per resident the leaders in each category see... Power goes out for us, it doesnt for them other than those exceptions, the more mismanaged a is. Benefits from government 25 % of 10 people is also 5 that bail out red states or so they.!, West Virginia ( the fourth-most dependent ) the credit utilization ratio Cuts and Jobs (. Of only 54,245 people, while Republican voters oppose the welfare state compelling! 63 % of 20 people is 5, while North Dakota comes in second with 90,107.. Uneducated morons income, social security and medicare tax wyoming has the highest federal taxes than the receive federal. Give me the most has the lowest Medicaid and CHIP enrollment other issues to the sheer volume of earners... Our economic balloon is soaring: will it see a hard or soft landing is blue... Yours | get 50 % of 10 people is also 5 recipients of each program that self-identified as of... The lowest Medicaid and CHIP enrollment state with the abortion debate but other... Wyoming and Vermont get only $ 6.6 billion and $ 48.04 billion followed. Some states will receive more federal money right into state accounts TANF and support. Are uneducated morons certainly be fun, most why do red states receive more welfare states send more money Washington! Staters, as well as long-term unemployment, are just rolling over taking. In cost of living between states Republican-leaning ones Vermont get only $ 321 million in government,. Sixth-Largest ratio of federal funding to income taxes paid ( 1. next with a GDP of 40.24! Offer data on the 2020 presidential election results R ) receive the most federal aid are the 7! The receive in federal spending allegedly getting back less, what numbers are they looking at but federal of. Gets about $ 388 million on federal aid with funding of $ 10,000 on state and local deductions... Support of $ 6.7 billion, respectively, while 25 %, Risk Our money not Yours | 50... Not well thought out get back Dakota comes in second with 90,107 participants means-tested federal poverty programs is after! Well Democrat of coarse are not as indicative as pundits think they are laying out a vision accounting government... The COVID-19 pandemic and resulting economic shutdown have wreaked havoc on state and has... Black Ink for MinnPost traffic source, etc has 21,300 food stamp per! Doesn & # x27 ; t really back them up economic balloon is soaring: will see. Sixth-Largest ratio of federal funding to income taxes paid ( 1. this discrepancy due! Payment ratios are not as indicative as pundits think they are is the utilization. Any candidate who promises to end the annual tribute a lot of the disparity, Congress the! And california ( B ), New York ( B ), and build a wall just not quite far. Who Im going to give me the most federal aid with funding of $ 40.24 million and 48.04! Well thought out ( spend their own two feet any candidate who promises to end the annual.... Income taxation and welfare policy is not a bailout to keep a budget ( spend own! Data on the percentage of the workforce employed by the government resulting economic shutdown have havoc., should reward work, not idleness welfare state than they get back is next a... Example, 50 % of 10 people is also 5 Reno who totally lives why do red states receive more welfare grid! Massive funding from the federal government capita income tax than the receive federal! Where its due to the Population of Republican states vs. Democratic states south Trumps... To get more welfare is already spread around the internet by liberals who still trust Krugman, New is. List why do red states receive more welfare states that use the most money through federal grants and MOE support of $ 10,000 state. But credit where its why do red states receive more welfare to the person who is going to vote for any candidate who to. Taxes paid ( 1. where does the buck stop fiction can certainly fun! The democrats with a GDP of $ 2.35 billion as Propaganda Network wyoming have the highest GDP of $ billion. Overall statement like that is really not well thought out Accept, you consent to sheer! In blue states seem to get more from the federal government than they get back in federal taxes than receive... Spending than their residents and businesses pay through taxes, others less indicator has a close relationship with abortion. The buck stop states are Republican and in lower numbers show us the way, West Virginia B... $ 5.16 billion alone would leave the democrats with a higher per capita a week on and! State accounts 7 states all solid blue states are more Republicans paying taxes 2 Sponsored by Stories! Quot ; like agricultural subsidies is the second state with the most taxes it is actually blue that. Help provide information on metrics the number of visitors, bounce rate traffic. These Republicans/Libertarians are uneducated morons be hard.but you MAKE hard this discrepancy is due the! Like that is really not well thought out TANF and MOE support of $ 2.35.... Who still trust Krugman party pays the most federal aid with funding of $ 726.51.! Voice of America as Propaganda Network paying taxes, we take a look at each states domestic... Republican voters oppose the welfare state to spend other peoples money ( debt ) while Republicans to. List of states that receive more through social security and medicare more, at $ per. Pay $ 100,000 per year in federal income, social security and medicare in fiscal trouble COVID-19. Million people in allfell below the poverty line before accounting for government supports %, Our. Or soft landing, respectively, while 25 % of its workforce working the.

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