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. The blue staters, as always, are just rolling over and taking it. Matt Palumbo writing at The Dan Bongino Showfound thateven if red states receive more in federal welfare, its not going to Republicans. 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). California tops the list of states that receive the most federal aid with funding of $726.51 billion. 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.. BOSTON Hey, isnt it time all these so-called conservatives down in the red states actually started standing on their own two feet? I will graph the two-party vote, more data is at the end. Is that fair? 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. LIVE WITHIN YOUR MEANS. 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. Far from a dependency caused by state political leaning, it is typical for states to receive more in federal funds than they collect in federal taxes an anomaly made possible only by rampant federal deficit spending. Laura Schultz, executive director of research for the Rockefeller Institute, wrote up the results. 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New York and California are the prime examples. 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. I would agree that northerners are pretty smart. New Mexico, Virginia, and California meanwhile are among the most federally subsidized states. Using data from the . However, these two are also leading tax donor states, so they contribute as much as they take. 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. Also on the high end are Louisiana (44.0 percent), Tennessee (41.0 percent), South Dakota (40.8 percent), and Missouri (39.4 percent).". You understand that within each state there are urban enclaves very capable od skewing that poor metric. 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. California is also the state that receives the highest federal funding and has the most Medicaid participants in the US. Mississippi and Hawaii are the least and most expensive states to live in, respectively, while federal eligibility requirements are uniform. Ten out of the 15 least dependent states . Indeed, people who live off the government disproportionally support Democrats. 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. I told her that when the power goes out for us, it doesnt for them. Wyoming gets the least in total funding $12.46 billion. 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. In those cases, federal funding represents a significant share of the states income. This is, after all, another way of pouring federal money right into state accounts. Conservatives next. 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. Sure, there are some prominent blue states with high rates of government dependence: Vermont is No. Democrat states like New York, California, and Illinois are among those that pay the most in federal taxes. He has worked as an analyst at McKinsey & Co., and is a Chartered Financial Consultant. In addition to the total amount of federal funding, there are a few other criteria at play too. Wyoming and Vermont get only $6.6 billion and $7.4 billion in government grants, once again at the bottom. Do you think hes going to mention it any time soon? The federal government of course, Attribution-NonCommercial-NoDerivatives Creative Commons license. 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). See our full republication guidelines for more information. Most funds go to several programs focused on providing healthcare, food, and housing, according to US welfare statistics and facts. The gross domestic product (GDP) represents the monetary value of all services and goods made in a country within a given period. Therefore, blue states are bailing out red states or so they say. The data is from 2004-2007. And the five states with the lowest . High taxes, high crime, high cost of living, union control, and the list goes on. The 10 states with the highest surplus per taxpayer are ALL Republican Governors with Republican Legislatures. Did Roger Stone Collude with Julian Assange to Help Trump? How do you justify percentages? Frequently Asked Questions Which states rely most on federal aid 2020? Each of these is means tested, meaning recipients must earn below a certain income threshold in order to receive federal assistance. The list of states that benefit most per capita from federal spending is overwhelming red, that is to say, Republican, you know, the party that claims to favor lower taxes (perhaps especially on the rich) and less government spending in order to net more of what, in Republican rhetoric, is called freedom. A federally dependent state receives massive funding from the federal government. It also said 25% are on disability. A recent Rockefeller Institute study makes clear how much money flows out of Democratic-leaning states into Republican-leaning ones. (The fifth is New Mexico, which has turned blue.) Paul Krugman is in puzzlement, having observed that Red States get more welfare funding, while Republican voters oppose the welfare state. 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. To republish, copy the HTML at right, which includes our tracking pixel, all paragraph styles and hyperlinks, the author byline and credit to MinnPost. 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. It appears that once more common sense is right and the impression left by the New York Times wrong. THE TEN POOREST STATE IN THE UNION ARE REPUBLICANS FLORIDA.GEORGIA.ALABAMA,WEST VIRGIANA, KENTUCKY,TENNESSEE,TEXAS,ARKANSAS,OKLAHOMA AND VERMONT. The states with the lowest personal income per capita are Mississippi, West Virginia, Alabama, New Mexico and Kentucky. My ex-partner demanded that I pay 50% of our daughters medical expenses. These are the exact same states with the lowest and highest balance of payment ratios, respectively. 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. 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. And they just say heck with THAT noise! Pay your bills!!! 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. 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. 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. Nearly 10% of Marylands workforce is employed by the government, making the jurisdiction one of the most federally dependent states in this regard. Brett Arends is an award-winning financial writer with many years experience writing about markets, economics and personal finance. 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 Most of the transfers do not come from "red state welfare" like agricultural subsidies. Governmental programs can doand have donegood. You also have the option to opt-out of these cookies. However, anybody who thinks that the government owes them a livelihood, well they are pretty lazy in my book, as I could have gone on SSI myself probably 20 years ago because of physical ailments that affected my work, but I did not because even though I am slower (I get paid for what I do and not by the hour medical transcription) I still take pride in what I do and have taught at a local college. 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. 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. 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. Democrats, the blue state party, actually keep campaigning for higher federal taxes. Wyoming and Utah have the lowest number of SNAP recipients per capita or 4,442 and 5,134, respectively. In just the past few decades, hunger and malnutrition have become far less serious social problems thanks to food stamps. This statistic alone would leave the Democrats with a higher percentage of welfare recipients. California tops the list of states that receive the most federal aid with funding of $726.51 billion. The future of government spending is coming into focus as the 2020 elections approach. Blue states, on the whole, contribute more tax revenue to federal coffers than they receive in return. How many Republican states are more rural? And taxpayers in blue states would save, on net, gazillions in tax dollars. . Republican states meanwhile lead the way in contracts received, while Democrat states get the highest funding through grants. The list of states that pay more than their pro-rata share into the federal treasury is overwhelmingly Democratic, that is to say blue. New York is the second state with the most Medicaid users. North Dakota . Here are the key figures regarding the states most dependent on welfare and those that do great even without federal funding: California and New York are also the states with the most investigations, according to American welfare fraud stats. life doesnt have to be hard.but you MAKE hard. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. Very few blue states make the list of those receiving the most per capita benefits. Skip Estesis the legislative manager at the ALEC Center for State Fiscal Reform. You have to keep in mind that the Federal government spends more. Purple states were almost exactly at the national level with 32.92 percent coming from Washington. We're not just against something. Certain state leaders, including New York Gov. 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. In this category, the blues dominate as the most federally dependent states. Paul Krugman is in puzzlement, having observed that Red States get more welfare funding, while Republican voters oppose the welfare state. Alaska follows with a federal aid share of 50.70%. If a voter's concern is child welfare, then Red states appear to become much less concerned after the child is born. How about we just use common sense. Low-income states receive more federal money than high-income states by design because of means-tested federal poverty programs. MinnPost's in-depth, independent news is free for all to access no paywall or subscriptions. Against a national average of $1,935 in intergovernmental spending per American, red states receive just $1,879. Some US states have a low federal dependency and pay more in federal taxes than the amount they receive in government aid. The red states aren't in fact poorer than the blue states. The other side of balance-of-payment ratios is federal spending. Governors in red states are issuing public invitations to people in blue states to move to their states. Some of the most expensive federal programs are Medicaid, Supplemental Nutrition Assistance Program (SNAP), Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). So why should we reward it, continuing the miserable status quo? 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. Louisiana and West Virginia come in next with 17,320 and 17,081 recipients per 100k, respectively. Maryland (B), Virginia (B), and Hawaii (B) have the highest share of government jobs. Plus, federal means-tested eligibility does not control for differences in cost of living between states. Virginia (B), Kentucky (R), and New Mexico (B) get the most in federal funding per resident. But thats because those states particularly Connecticut, Massachusetts, New Jersey, New York and California have more rich people. Then they see their neighbor, new car every 2 years, vacations, eat out, new fashionable clothes.and then borrow to send kids to college. Because of this. 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. The total amount the federal government collected from each state in the 2017 fiscal year ranged from $5.6 billion from Vermont to $435.6 billion from California. 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. So they feel entitled to bailouts. 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. On the other hand, a states financial health has everything to do with state policy. For each US dollar paid in taxes, residents of Kentucky get 3.78 dollars in federal assistance. 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. Oh, yes, and build a wall just not quite so far south as Trumps. However, these states send far more tax dollars to Washington than residents in low-tax states. 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. Purple states see the least of their money returned to them per capita, at just $1,770. Unemployment benefit recipients from Mississippi can get a maximum of $235, while those from Alabama, Florida, Louisiana, and Tennessee receive $275 each. Personally, I try to study 10-15 hours a week on economics and other issues. So are the Dems moochers, or is their labor being exploited? All Rights Reserved. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Democrats give more of the working mans money to people who dont work. Republican states are in a worse position when it comes to states that receive the most welfare, with eight out of the bottom 10 states with the lowest welfare assistance boasting the red color. In 1992, Clinton got himself elected president in part by pledging he'd "end welfare as we know it.". 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. You are intelligent enough to readily understand that the red state/blue state metric is inadequate for the determination you are postulating. Now its true that the average taxpayer in blue states pays a higher per capita income tax than the average taxpayer in red states. Hawley Wrecks Garland Over DOJ Bias, While Cruz and Lee Finish Him Off, Ted Cruz chews out Merrick Garland over BS non-answers to questions about threats to SCOTUS Justices, The One 'Woke' Job That Is Fading Quickly, Cruz Goes Ballistic on Garland Over Illegal Protesting at the Homes of Supreme Court Justices, CNN Embarrasses Themselves on Biden's Illegal Student Loan Scheme, Garland Gives Curious Explanation About Why Mexican Cartels Aren't Classified as Terrorists, McCarthy Tells CNN Why He Gave J6 Security Footage to Tucker Carlson, GOP Senators Torch Garland for Targeting Pro-Life Activists in the Aftermath of Dobbs. "As governors, as state leaders, we're more optimistic than our friends in Washington. The 10 states with the worst numbers in the red are almost all blue states. The second most critical tool to smooth consumption in red states is fiscal transfers. Unfortunately for these critics, the data doesn't really back them up. But where does the buck stop? More importantly, this indicator has a close relationship with the abortion debate. 19. California gets a total TANF and MOE support of $6.7 billion, followed by New Yorks $5.16 billion. 42 states receive more money from the federal government than they receive. 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. After looking at the actual polling data this is a joke on so many levels I dont even know where to start. I dont much see any references to the population of republican states vs. democratic states. For instance, not only are the top 7 states all solid Blue states, but the bottom 9 states are all solid Red. From the Gellman-paradox we know that the low-income voters who drag down the Red States average tend to vote disproportionally for Democrats. 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. Food Stamps: 20% 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.. Lets crack down on all those Cadillac queens. Except it turns out the real offenders are the Pickup princes in the South and West. Dont the Democrats want the rich paying their fair share? 02/22/23 3:55 PM ET. During this period in these polls a plurality of voters supported Democrats. But this is because the blue states budgets are far larger due to all the bloat and waste. Connecticut receives 1.29 dollars in federal aid for every dollar paid in taxes. Yet some states will receive far more than others. The states with the highest personal income per capita are Connecticut, Massachusetts, New York and New Jersey. For the American Rescue Plan Act, passed in March, states will receive $195 billion in payments. 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. If you have questions, emaileditors@minnpost.com. Under OBama I got the 4% cost of living, but then they raised my insurance costs, so I made an extra $10 or so. 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. Your email address will not be published. Democrats suck the life out of Republican states (and democrat states) alike. Americans are getting fed up with the high taxes and mismanagement in blue states. To make an overall statement like that is really not well thought out. Six of the 10 states that are least dependent yes, least dependent on the government voted for Hillary Clinton in 2016. Republican voters earn significantly more than Democrats, even though Red state earn less than Blue states. Is it because of welfare beneficiaries and conservative policies not raising enough revenue? The campaign gained strength just in time for the emergence of a new and more contagious COVID variant: the Delta variant. 11, New York No. 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. These two are the US states that receive the most government assistance in this category. 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. Why do traditional "red" states receive more in federal funds than "blue" states? The COVID-19 pandemic and resulting economic shutdown have wreaked havoc on state budgets. 63% of welfare recipients are black or Hispanic, and those groups vote overwhelmingly Democratic. 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 . This article accuses the NYT of using faulty data but then does the exact same thing. Read:Trumps tax reform appears to be giving more money back to Republican red states. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. You have similar results in this recent NPR-Poll. Democrats in Congress are currently working on legislation to give states bailouts due to COVID-19. Download the associated excel file and see for yourself. Democrats are the ones always cheering on expansions of federal power and federal spending. 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