Red States Feed at Federal Trough, Blue States Supply the Feed (leftist law professors)

Tax Foundation Data ^ | September 27, 2004 | Tax Prof

[Atlas Sneezed]

The Tax Foundation has released a fascinating report showing which states benefit from federal tax and spending policies, and which states foot the bill.

The report shows that of the 32 states (and the District of Columbia) that are "winners" -- receiving more in federal spending than they pay in federal taxes -- 76% are Red States that voted for George Bush in 2000. Indeed, 17 of the 20 (85%) states receiving the most federal spending per dollar of federal taxes paid are Red States. Here are the Top 10 states that feed at the federal trough (with Red States highlighted in bold):

States Receiving Most in Federal Spending Per Dollar of Federal Taxes Paid:

1. D.C. ($6.17)

2. North Dakota ($2.03)

3. New Mexico ($1.89)

4. Mississippi ($1.84)

5. Alaska ($1.82)

6. West Virginia ($1.74)

7. Montana ($1.64)

8. Alabama ($1.61)

9. South Dakota ($1.59)

10. Arkansas ($1.53)

In contrast, of the 16 states that are "losers" -- receiving less in federal spending than they pay in federal taxes -- 69% are Blue States that voted for Al Gore in 2000. Indeed, 11 of the 14 (79%) of the states receiving the least federal spending per dollar of federal taxes paid are Blue States. Here are the Top 10 states that supply feed for the federal trough (with Blue States highlighted in bold):

States Receiving Least in Federal Spending Per Dollar of Federal Taxes Paid:

1. New Jersey ($0.62)

2. Connecticut ($0.64)

3. New Hampshire ($0.68)

4. Nevada ($0.73)

5. Illinois ($0.77)

6. Minnesota ($0.77)

7. Colorado ($0.79)

8. Massachusetts ($0.79)

9. California ($0.81)

10. New York ($0.81)

Two states -- Florida and Oregon (coincidentally, the two closest states in the 2000 Presidential election) -- received $1.00 in federal spending for each $1.00 in federal taxes paid.

http://taxprof.typepad.com/taxprof_blog/2004/09/red_states_feed.html

[The Numbers Guy]

If you combine data on voter preference by income level (from exit poll data) and percent of taxes paid by income level (income, payroll, and excise taxes from IRS data), you find that Bush voters pay 57% of the taxes and Kerry voters pay 42% of the taxes.

% of taxes paid
Under $15,000 - 1.2%
$15,000-$29,999 - 4.3%
$30,000-$49,999 - 11.0%
$50,000-$74,999 - 14.6%
$75,000-$99,999 - 13.9%
$100,000-$199,999 - 23.3%
$200,000 or more - 31.7%

% voting for Bush
Under $15,000 - 36%
$15,000-$29,999 - 42%
$30,000-$49,999 - 49%
$50,000-$74,999 - 56%
$75,000-$99,999 - 55%
$100,000-$199,999 - 57%
$200,000 or more - 63%

For each income level, multiplying (% of taxes paid) X (% voting for Bush), gives you

% of taxes paid by Bush voters
Under $15,000 - 0.4%
$15,000-$29,999 - 1.8%
$30,000-$49,999 - 5.4%
$50,000-$74,999 - 8.2%
$75,000-$99,999 - 7.6%
$100,000-$199,999 - 13.3%
$200,000 or more - 20.0%

For a total of 57% of taxes paid by Bush voters. You can do the same exercise for Kerry and see that he gets 42%.

Exit poll source: http://www.cnn.com/ELECTION/2004/pages/results/states/US/P/00/epolls.0.html
Tax data source: http://www.house.gov/jct/x-2-01.pdf

[Species8472]

5. Alaska ($1.82) Sparse population, military expenditures, and an oddball.

You bet we are an oddball, Alaska is 1/3rd the size of the lower 49 states. We have more coastline than the rest of the U.S. as well as more navigable rivers. and a lot of federal assets. Only 3% of the land is in private hands. Though we would be well able to take care of ourselves, the blue stater's insist that we keep most of our land and resources locked up in a wilderness designation. Surprise! it takes money to manage wilderness! How else do you expect to pay for firefighting on the 6.5 million acres that burned here last fire season. The feds insist on managing fish and game on federal lands due to our refusal to grant a natural resource priority to rural natives (Alaska's constitution guarantees an equal right to fish and game for ALL Alaskans).

Bottom line - We have more than the ability to pay our own way if you let us develop our resources and land, but if you want to keep us locked up in the wilderness than the blue stater's should have to pay for their parkland.

[Hat-Trick]

What's all this talk about "blue" states? I only see a few "blue" counties.

[saleman]

So what's the deal? Are the blue's wanting to pay less or are they wanting the red's to pay more or what? Oh, by the way, our income tax code is such that if you make more, ARE RICHER, than us poor red's you pay more tax. So it sounds like you RICH blue states need a tax cut. If you don't want one then please don't whine about how much you are paying.

Oh, and please don't ask us poor red stater's to pay more. We're not. Unless we get a whole lot RICHER.

[dvwjr]

Ah yes, numbers!

Real ones which dance and sing... :-()

Excellent use of exit poll numbers and IRS data from the House...

States don't pay taxes (anymore), people pay taxes.

Bush folks pay more and vote more...


dvwjr