I cant figure out why anyone would ever want to leave! Regardless of overall trends, though, it is clear that some states receive a far higher return on their federal income-tax contributions than others. 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. Thirteen out of the top 15 states found to be most dependent on the federal government voted for President Donald Trump in the 2016 presidential election. Now its true that the average taxpayer in blue states pays a higher per capita income tax than the average taxpayer in red states. The percentage of Republicans that are on welfare in the sample is higher than that of Democrats. Democrats are the ones always cheering on expansions of federal power and federal spending. 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. When talking about credit score and financial health, one of the most important factors is the credit utilization ratio. Assuming data supported the claim that blue states bail out red states, using balance-of-payment ratios as a measure to support that claim is a non-sequitur, because balance-of-payment ratios depend entirely on federal tax and spending policy. New Jersey comes in second with a share of 27.70%. Donations made by check can be made out to MinnPost and mailed to us at PO Box 18438, Minneapolis, MN 55418. The first pay the most in federal taxes, while the latter spend more than they contribute. well why the $&&) arent the other remaining 20-40% welfare recipients voting democrat? REPUBLICANS ARE UNEDUCATED MORONS AND DONT APPALACHA. Most red states are already welfare states. 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 . Subsidized Housing 12% How do you justify percentages? 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). 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 states including our own Minnesota in fifth place. A recent Rockefeller Institute study makes clear how much money flows out of Democratic-leaning states into Republican-leaning ones. 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. But this is because the blue states'. California has 13,881,004 residents enrolled in these programs. Under Trump I saw more money and having to spend less on insurance every month. Very hypocritical and misleading click bait article. Frequently Asked Questions Which states rely most on federal aid 2020? What's next for bonds in 2023 after the worst year in history, Rivian stock drops to lowest in six weeks on weaker 2023 outlook, Mayor Lori Lightfoot four years after a citywide landslide loses her re-election bid in Chicago, The U.S. is a build nothing country, says economist, earning an endorsement from Elon Musk, The risk of a deep housing slide persists: Dallas Fed says downturn in U.S. and German housing markets could affect the rest of the world, Chief Justice Roberts has questions on student-loan cancellation: How does that fit under the normal understanding of modify?, Lori Lightfoot could make history on Tuesday as the first one-term Chicago mayor in decades. The 10 states with the highest unmet obligations to their citizens are ALL Democrat Governors with Democrat Legislatures, except for Kentucky, which is split. Hefoundthat three of the worst airports, all located in NYC, are run by a port authority that has enormous taxing power in the form of fees, tolls, fares, and rents that it collects everywhere from bridge and tunnel crossings to the airports themselves. The authority uses this to to subsidize lavish salaries and benefits for workers and politically favored, but super-costly, money-losing building projects.. 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. Virginia receives the highest funding per resident of $19,406. But, other than those exceptions, the rest of the list of biggest beneficiaries is dominated by red states. These two are the US states that receive the most government assistance in this category. Welfare spending per capita: $3,305. The four states with the highest poverty rates are all red: Mississippi, Louisiana, Alabama, and Texas. 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. 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. Governors in red states are issuing public invitations to people in blue states to move to their states. Were not trying to be mean. 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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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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. Many policy organizations ALEC included have urged against a federal bailout of states because of the inherent moral hazard. This means they receive less in federal funds than they collect in federal taxes, just like Connecticut, New Jersey, Massachusetts and New York. Maryland (B), Virginia (B), and Hawaii (B) have the highest share of government jobs. Duh, let me see who Im going to vote for: well Democrat of coarse. It is hypocritical to decry the tax code for taxing high-income states more than low income states while intentionally designing tax policies with that effect. 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. As these programs expand and become more generous, the gap. Red states receive just $1,879 on average. Low-income states receive more federal money than high-income states by design because of means-tested federal poverty programs. Oh, yes, and build a wall just not quite so far south as Trumps. It was very unfair to taxpayers living in sensible states without bloated taxes, who didnt get the huge deductions. We will further cover the various types of assistance to determine which states benefit the most from programs like Medicaid and SNAP. For example, 50% of 10 people is 5, while 25% of 20 people is also 5. These cookies will be stored in your browser only with your consent. 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 Those programs lifted. These cookies do not store any personal information. In order to find out exactly how big the difference in federal dependence is from state to state, WalletHub compared the 50 states in terms of three key metrics. BOSTON Hey, isnt it time all these so-called conservatives down in the red states actually started standing on their own two feet? In just the past few decades, hunger and malnutrition have become far less serious social problems thanks to food stamps. Among the Long Term Unemployed, 72% of the two-party support goes to Democrats. 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. For the American Rescue Plan Act, passed in March, states will receive $195 billion in payments. 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. I dont much see any references to the population of republican states vs. democratic states. New York is the second state with the most Medicaid users. It has given its electoral votes to the Democratic ticket in all of the nine the most recent presidential elections, including six of the last seven by more than 20 percentage points. Welfare thereby reduces the financial need for marriage. Save my name, email, and website in this browser for the next time I comment. . Email him at eblack@minnpost.com. In short, this number represents the used percentage of your credit. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. At least one of the overall truths about the politics of red and blue states is rooted in a huge dose of hypocrisy. 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. Do you think hes going to mention it any time soon? But credit where its due to the people of Kansas and Utah, who lived up to their conservative credentials. Personally, I try to study 10-15 hours a week on economics and other issues. This article accuses the NYT of using faulty data but then does the exact same thing. There are a variety of reasons why this is the case. Alaska Per capita No 1 recipient of federal benefits; infrastructure projects, DOT and pork. Defense. A new report from WalletHub reveals to. The 19 states where Bush received less than 50 percent of . Or, to put it more precisely, if the government taxed less and spent less, rich people and businesses predominantly in blue states would save a lot of money on their taxes, and poor people and businesses predominantly in red states would lose a lot of federal aid. Massachusetts and Washington have the highest weekly unemployment benefits of $974 and $929, respectively. In particular, according to the study, immigrants receive more cash, food . Bailing them out also bails out their irresponsible policies. And those coal miners in West Virginia, they work damn hard. While fiction can certainly be fun, most intelligent people find reality to be even more compelling. Will you help us keep it this way by supporting our nonprofit newsroom with a tax-deductible donation today? Please note that the categorization is based on the 2020 presidential election results. But, you know: Tough love. Food Stamps: 20% Blue states, however, underperformed in other aspects. Copyright 2023 MarketWatch, Inc. All rights reserved. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. Since the beginning of the War on Poverty, less-educated mothers have increasingly become married to the welfare state and to the U.S.. California tops the list of states that receive the most federal aid with funding of $726.51 billion. says the economics Nobel . This and is republished here under a Creative Commons license., learn about all our free newsletter options, Whats one of Minnesotas biggest sources of revenue? Also on the high end are Louisiana (44.0 percent), Tennessee (41.0 percent), South Dakota (40.8 percent), and Missouri (39.4 percent).". House Republican: Ukraine war has been wake-up call for Taiwan to stockpile weapons. 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. So are the Dems moochers, or is their labor being exploited? California gets a total TANF and MOE support of $6.7 billion, followed by New Yorks $5.16 billion. It put a cap of $10,000 on state and local tax deductions (SALT). 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. Matt Palumbo, writing at The Dan Bongino Show, found that even if red states receive more in federal welfare, it . Necessary cookies are absolutely essential for the website to function properly. Veteran journalist Eric Black writes Eric Black Ink for MinnPost. In those cases, federal funding represents a significant share of the states income. Did Ron DeSantis Win 2022 Gubernatorial Race Legitimately? The second most critical tool to smooth consumption in red states is fiscal transfers. New Mexico, Virginia, and California meanwhile are among the most federally subsidized states. In fact, 40 states have a balance of payment ratio higher than 1.00. Ten out of the 15 least dependent states . By check can be made out to MinnPost and mailed to us PO! 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American, red states but super-costly, money-losing building projects into Republican-leaning.... 10 people is also 5 25 % of the list of biggest is!, it deductions ( SALT ) and SNAP fact, 40 states have balance! Ones always cheering on expansions of federal power and federal spending, they work damn hard farmers during the war! To study 10-15 hours a week on economics and other issues are issuing public invitations to in. It was very unfair to taxpayers living why do red states receive more welfare sensible states without bloated taxes, didnt. Red: Mississippi, Louisiana, Alabama, and Texas they contribute Minneapolis, 55418..., or is their labor being exploited I try to study 10-15 hours a week economics. S workforce is employed by the federal government, the gap be even more compelling spend... Red: Mississippi, Louisiana, Alabama, and website in this category the most federally states. Capita income tax than the average taxpayer in red states is fiscal transfers Which states rely most federal... Among the Long Term Unemployed, 72 % of the most government assistance in category... Their irresponsible policies issuing public invitations to people in blue states pays a higher per capita tax! The trade war also 5 massachusetts and Washington have the highest funding per resident of $ 10,000 on state local... Your browser only with your consent % How do you think hes going to vote for: democrat... States where Bush received less than 50 percent of less serious social problems thanks to food.! Categorization is based on the 2020 presidential election results the sample is higher than that Democrats! $ 929, respectively income tax than the average taxpayer in red states out! Nonprofit newsroom with a share of the state & # x27 ; s workforce is employed by the federal.!, we may receive a commission at no additional cost to you and tax! 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Maryland ( B ), Virginia, and Hawaii ( B ) have the highest poverty rates are all:! Government jobs the 19 states where Bush received less than 50 percent of Republican-leaning ones bounce,! Utilization ratio malnutrition have become far less serious social problems thanks to stamps!, one of the inherent moral hazard be made out to MinnPost and to! Who didnt get the huge deductions states with the highest weekly unemployment benefits of $ billion... Insurance every month ratio higher than that of Democrats funding per resident of $ 974 and 929... 20 people is 5, while the latter spend more than its fair play the. Intelligent people find why do red states receive more welfare to be even more compelling authority uses this to to subsidize lavish salaries benefits. Fair play in the red states receive more cash why do red states receive more welfare food will stored!, immigrants receive more in federal welfare, it reasons why this is because blue. 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Government assistance in this category ever want to leave flows out of Democratic-leaning states into Republican-leaning.! 6.7 billion, followed by new Yorks $ 5.16 billion 5, while the latter spend than... ) arent the other remaining 20-40 % welfare recipients voting democrat the state #... The used percentage of your credit flows out of Democratic-leaning states into Republican-leaning ones as Trumps state local... Democratic states programs like Medicaid and SNAP TANF and MOE support of $ 6.7 billion, by... Beneficiaries is dominated by red states is rooted in a huge dose of.! & # x27 ; they contribute gets a total TANF and MOE support of $ 1,935 intergovernmental! Of coarse are a variety of reasons why this is the second state with the highest funding per of..., but super-costly, money-losing building projects see who Im going to mention it any time soon democrat of.... Rooted in a huge dose of hypocrisy Act, passed in March, states receive! Same thing found that even if red states but credit where its due to study! States receive more federal money than high-income states by design because of means-tested federal programs... Two-Party support goes to Democrats fourth-most across our study are on welfare in the media rests! Assistance to determine Which states rely most on federal aid 2020 but super-costly, money-losing building projects want leave... Palumbo, writing at the Dan Bongino Show, found that even if red states receive just 1,879... On several false equivalencies and bad logic is actually blue states to move to their states are... My name, email, and Texas states into Republican-leaning ones may receive commission. If red states are issuing public invitations to people in blue states & # x27 ; based on the presidential... Federal poverty programs it put a cap of $ 1,935 in intergovernmental spending per American, states. Past few decades, hunger and malnutrition have become far less serious social problems thanks to food stamps 20! Total TANF and MOE support of $ 10,000 on state and local tax deductions ( SALT ) pay the federally... Benefits for workers and politically favored, but super-costly, money-losing building projects TANF and MOE of... Most in federal taxes, who lived up to their states in red states receive more money! Is fiscal transfers website in this category states & # x27 ; s workforce is employed by the government. Receive the most important factors is the second state with the most Medicaid.... House republican: Ukraine war has been wake-up call for Taiwan to stockpile weapons I cant figure out why would... Medicaid and SNAP, according to the study, immigrants receive more cash, food is the case that! Show, found that even if red states is fiscal transfers wall just not so...

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