Ratio of spending by state per dollar of Federal taxes

Posted by prof_procrastinate

6 comments
  1. How do farm subsidies work into this. New york pays taxes to Kansas bit then gets cheap groceries. I’m not trying to imply that it balances out. It just seems that this is never taken into account in these situations. New York definitely can’t make enough food to feed all of its people.

  2. States don’t pay taxes; people do. Given the progressive tax system most taxes comes from the rich. States with more rich people pay more taxes. Only way to “fix” this issue is to lower taxes on the rich.

  3. For those who don’t bother reading the article, this may be helpful:

    >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. This disparity is greatly magnified by the progressive rate structure of the federal income tax, which taxes higher income states more heavily than low-income states, regardless of the level of spending received.

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