Commentary

Gainers and Drainers

Which states benefit from federal taxing and spending policies? According to a Tax Foundation study: Currently taxpayers in North Dakota benefit most from the give-and-take with Uncle Sam, receiving $2.03 for every dollar in taxes. New Jersey benefits least, receiving just 62¢ per federal tax dollar. Other states that receive little spending per dollar of federal tax are Connecticut (64¢), New Hampshire (68¢), Nevada (73¢), Minnesota (77¢) and Illinois (77¢). Though not comparable as a state, the District of Columbia is by far the biggest beneficiary of federal spending, receiving $6.17 for every federal tax dollarââ?¬â??more than nine times the national average. Tax Prof sees a pattern: Blue states feed red … 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. … 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.