Sunday, February 13, 2005

The Red States are Dependent Children Sucking on the Blue State Tax Revenue Teat: Stop Federal Income Redistribution Now

If you'd have a servant that you like, serve yourself.--Poor Richard

Eric Scigliano:
In 2003, the top subsidy-sucking state, in percentage terms, was red-lite New Mexico, which received $1.99 in federal money for every dollar it sent to Washington, D.C. All the next eight net recipients of federal spending were redder yet: Kentucky, Virginia, Montana, Alabama, North Dakota, West Virginia, Mississippi and Alaska, which received $1.60 to $1.89 back for each tax dollar.

The list of net losers in the state-federal exchange, by contrast, reads like a Who's Who of Blue. Two of the top 14 were traditionally red Western states that are starting to turn purple, Colorado and Nevada. The other 12 are all blue: California, Connecticut, Delaware, Illinois, Massachusetts, Michigan, Minnesota, New Hampshire, New York, Washington, Wisconsin and the biggest chump of all, New Jersey, where the federal government spends just $.57 for every dollar it collects. Clearly Tony Soprano did not negotiate this deal.

Only five blue states were net recipients of federal subsidies. Only two red states were net payers of federal taxes. Washington, despite its large military presence and big defense contractor The Boeing Co., received just 90 cents on its federal tax dollar. Oregon and swinging Florida are perfect washes: They received one federal dollar for every dollar they paid in taxes.

P-I Focus: Red and Blue and the Color of Money