why do red states receive more welfare

Vermont and Wyoming have the worst GDPs of $40.24 million and $48.04 billion, respectively. 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). Good summary. Others have repeatedly pointed out that every year the so-called "blue" states pay way more than their share in federal taxes, and the extra money goes to the red states. Trumps tax reform appears to be giving more money back to Republican red states, Reatas new rare-disease drug will cost $370,000 per year, Lawmakers consider plan to raise Social Securitys full retirement age to 70. Author: Samanda Dorger. It appears that once more common sense is right and the impression left by the New York Times wrong. Without it, rich people in blue states that had bloated, wasteful, high state and local taxes were able to deduct those ridiculously huge tax numbers from their federal taxes, resulting in those states sending far less money to the federal government. Why, send it to other states of course! The states that keep the government solvent are the ones where taxpayers contribute more than they get back. The gross domestic product (GDP) represents the monetary value of all services and goods made in a country within a given period. 'Poor states receive more federal funding through Medicaid' WalletHub analyst Jill Gonzalez explained that "federal funding as a percentage of state revenue was calculated as states'. These cookies will be stored in your browser only with your consent. Wyoming gets the least in total funding $12.46 billion. I didnt like the liberal policies of my home state, Washington, so I moved to Arizona in my mid-20s. As expected, the poorest performing states are generally the highest taxed states. Welfare or public assistance: 22% 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'. A lot of the blue states were already in fiscal trouble before COVID-19. Therefore, blue states are bailing out red states or so they say. I dont think that these Republicans/Libertarians are uneducated morons. 02/22/23 3:55 PM ET. Does this surprise anyone? The first pay the most in federal taxes, while the latter spend more than they contribute. Many Democrats are pushing for an increase in social welfare spending while Republicans want to . Kyle Sammin at The Federalistfoundthat if you look at the amount of money the federal government gives to states on a per capita basis instead, blue states get more; $2,124 per resident. LIVE WITHIN YOUR MEANS. To try and rectify some of the disparity, Congress passed the Tax Cuts and Jobs Act (TCJA) in 2017. Sam Brownback Threatens to Defund Judiciary, The Wrecking Crew: How Conservatives Rule, Republicans Block Campaign Finance Reform. This category only includes cookies that ensures basic functionalities and security features of the website. New York is a very blue state. Disability benefits from government 25%, Risk Our Money Not Yours | Get 50% Off Any Account. Moving companies report more people moving from blue states to red states than vice versa. For example, 50% of 10 people is 5, while 25% of 20 people is also 5. And taxpayers in blue states would save, on net, gazillions in tax dollars. Senate Majority Leader Mitch McConnell (R-KY) touched a nerve recently by suggesting mismanaged blue states shouldnt be bailed out by the federal government; they should be forced to file bankruptcy instead. The states that use the most federal aid are the same . But, other than those exceptions, the rest of the list of biggest beneficiaries is dominated by red states. 9). I rely for that paragraph on Paul Krugmans latest column, which in turn relied on a just-released report by the Rockefeller Institute of Government, which found that blue states pay significantly more than their per capita share into the federal treasury, and red states get significantly more than their share of the benefit of how those taxes are spent. Wyoming, however, doesnt get a lot of federal business, unlike Virginia and Texas. The rest of the list of top per capita tax-paying states is likewise dominated by blue states. And they just say heck with THAT noise! Pay your bills!!! A new report from WalletHub reveals to. Virginia (B), Texas (R), and California (B) get the most money through federal contracts. Of course more rural states are republican and in lower numbers. Monday, September 27, 2004. Democrats suck the life out of Republican states (and democrat states) alike. These are the exact same states with the lowest and highest balance of payment ratios, respectively. There is no single aspect or figure to quantify that. Tino Sanandaji: How about that? Many Mississippians receiving federal assistance would not be considered poor compared to their states cost of living, while many Hawaiians not receiving federal assistance may be considered poor because of how expensive Hawaii is compared to other states. 50% of the people in say, Kansas would be quite different from 50% of the people say from Texas or Florida. (Rockefeller Institute of Government, World Population Review). Food Stamps: 20% Purple states were almost exactly at the national level with 32.92 percent coming from Washington. Connecticut has the lowest federal funding per resident of $4,152. For instance, not only are the top 7 states all solid Blue states, but the bottom 9 states are all solid Red. Retirees have no choice but to participate, and these programs are treated as contributer paid, not welfare, even though the payments are inadequate. Mississippi received $2.13 for every tax dollar the state sent to . My good friend had that happen to him and he is back to work, still coughing and still fighting exhaustion. Member donations are crucial to the work of our nonprofit newsroom. Brett Arends is an award-winning financial writer with many years experience writing about markets, economics and personal finance. Six of the 10 states that are least dependent yes, least dependent on the government voted for Hillary Clinton in 2016. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. Some states receive far more in federal spending than their residents and businesses pay through taxes, others less. A new report from WalletHub confirms what we already suspected: The states that depend the most on big gubmint are also the states that are are always whining the most about big gubmint.. There are many other factors in play, and thats why the situation in every state must be individually analyzed. My ex-partner demanded that I pay 50% of our daughters medical expenses. Regardless of overall trends, though, it is clear that some states receive a far higher return on their federal income-tax contributions than others. In fact, most high-tax states send more money to Washington than they get back in federal spending. Its like turkeys campaigning for Thanksgiving. Regardless of which party pays the most taxes it is almost a foregone conclusion that there are more Republicans paying taxes. Federal aid is allocated to states for a variety of purposes, primarily to supplement state funding for programs or projects deemed to be of national interest, such as Medicaid payments, education funding assistance, infrastructure assistance, and more. Nobody is trying to keep up with the Joneses anymore. 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As for blue states allegedly getting back less, what numbers are they looking at? 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. There are a variety of reasons why this is the case. 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. Would you like to learn the difference between donor and subsidized states? You have to keep in mind that the Federal government spends more. Virginia (B), Kentucky (R), and New Mexico (B) get the most in federal funding per resident. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. Polling has shown that the anti-vaccine message is especially popular . These cookies do not store any personal information. California (B), New York (B), and Texas (R) have the highest Medicaid and CHIP enrollment. Seven other states are donor states: New Jersey (-$10,334,000,000) Massachusetts (-$9,919,000,000) California (-$6,653,000,000) The article noted that of 20 States that receive more funding from the federal government than they pay in, 16 are Red States. GOP senators grill Garland on border security, weaponization of law Watch live: Jury to visit crime scene in Murdaugh trial ahead of closing Senate group wades into tough talks on Social Security, The shepherd boy, the wolf and the threat to Israeli democracy, Tester to join Manchin, Republicans in blocking DOL green investment rule, Watch live: White House monkeypox response team holds briefing, Do Not Sell or Share My Personal Information. So they feel entitled to bailouts. This website uses cookies to improve your experience while you navigate through the website. Dont the Democrats want the rich paying their fair share? By clicking Accept, you consent to the use of ALL the cookies. Most funds go to several programs focused on providing healthcare, food, and housing, according to US welfare statistics and facts. Some of the most federally dependent states include California and New Mexico, with most SNAP participants or Medicaid enrollment, respectively. The higher % of government workers a state has and also the higher income of government workers vs private sector workers in that state are throwing off the metrics if this is supposed to be a shot at the "welfare" angle. well why the $&&) arent the other remaining 20-40% welfare recipients voting democrat? Some of the most expensive federal programs are Medicaid, Supplemental Nutrition Assistance Program (SNAP), Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). A married couple with a moderately high income might pay $100,000 per year in federal income, social security and medicare tax. That is, they receive more federal dollars than they pay in. There are, however, several factors that help us establish where states rank on the list below: Each factor affects the rankings and represents a different type of federal dependency. With all the regulations, minimum wage mandates, and all your whining and crying. I would agree that northerners are pretty smart. References: Rockefeller Institute of Government, World Population Review, US Government Spending, Pew Trusts, World Population Review, Medicaid.gov, Saving to Invest, FAS, Moneygeek, Federal Schedules, USA Spending, SmartAsset, MoneyRates, New York Times, Your email address will not be published. Connecticut receives 1.29 dollars in federal aid for every dollar paid in taxes. Because we have a progressive tax system, more money comes from richer people, and if a state's citizens are, on average, richer, they pay more into the federal fisc. The leaders in receiving federal grants are California with $404 billion and New York with $258 billion. Some US states have a low federal dependency and pay more in federal taxes than the amount they receive in government aid. His latest award is from the Society of Professional Journalists, which in May 2017 announced hed won the national Sigma Delta Chi Award for online column writing. New York and California are the prime examples. 1. At the top of that list are Connecticut, New Jersey, Massachusetts and New York,. Also on the high end are Louisiana (44.0 percent), Tennessee (41.0 percent), South Dakota (40.8 percent), and Missouri (39.4 percent).". Against a national average of 32.62 percent [of a States budget] being federally subsidized, the blue states received 30.80 percent. And the five states with the lowest . The total amount the federal government collected from each state in the 2017 fiscal year ranged from $5.6 billion from Vermont to $435.6 billion from California. But a recent study by personal finance resource site WalletHub reveals that red-state economies are far more dependent on funding from the federal government than blue states. In particular, according to the study, immigrants receive more cash, food . Bailing them out also bails out their irresponsible policies. Sure, there are some prominent blue states with high rates of government dependence: Vermont is No. There are fewer states that would be labeled Republican based on the 2008 election, and there's a strong likelihood that tax and spending data would have changed as well. COMMON SENSE, or should I call it uncommon sense. Delaware receives only $321 million in government contracts, while Wyoming gets about $388 million. 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. See our full republication guidelines for more information. 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 President Trump tweeted, "Why should the people and taxpayers of America be bailing out poorly run states (like Illinois, as example) and cities, in all cases Democrat run and managed, when most of the other states are not looking for bailout help? Statistical differences in federal income taxation and welfare policy is not a bailout. 1 was Mississippi no surprises there followed by Alaska. Alaska has the fourth-largest federal share of state government revenue, as more than half of its revenue (50.83%) comes from federal sources. After looking at the actual polling data this is a joke on so many levels I dont even know where to start. Paul Vallas and Brandon Johnson will meet in a runoff to be the next mayor of Chicago after voters on Tuesday deniedincumbent Lori Lightfoota second term, issuing a rebuke to a leader who made history as head of the nations third-largest city. 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. I dont much see any references to the population of republican states vs. democratic states. New Mexico, Virginia, and California meanwhile are among the most federally subsidized states. Why does that represent, as I said above, a huge dose of hypocrisy? Low-income states receive more federal money than high-income states by design because of means-tested federal poverty programs. In addition to the total amount of federal funding, there are a few other criteria at play too. The amount of federal revenue collected from state taxpayers depends mostly on state income, and the federal income tax levies higher rates on filers with higher incomes. These cookies track visitors across websites and collect information to provide customized ads. Governmental programs can doand have donegood. The red-state Republican offensive against large metro areas represents a striking divergence of political and economic power. 11, New York No. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. We also use third-party cookies that help us analyze and understand how you use this website. States with older populations will receive more through social security and medicare. While fiction can certainly be fun, most intelligent people find reality to be even more compelling. Still, this concept goes beyond who gets the most federal funding by state. Under OBama I got the 4% cost of living, but then they raised my insurance costs, so I made an extra $10 or so. So basically the reason the Democrats are protesting the SALT cap is to help rich Democrats in blue states avoid the consequences of their states wasteful spending. Email him at eblack@minnpost.com. Maybe a combination of the two? And you, Arizona (No. It also said 25% are on disability. The other side of balance-of-payment ratios is federal spending. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. (US Government Spending, Pew Trusts, World Population Review, Medicaid.gov, Saving to Invest, FAS). Blue states get considerably more, at $2,124 per resident. these statistics on, what makes the numbers? Massachusetts (B), Washington (B), and Minnesota (B) have the highest max unemployment benefits. Republicans has claimed for years that the welfare system is making people dependent on government handouts. Federal aid represents only 24.40% of the Hawaii state revenue, placing the jurisdiction in the best position. Now, the city might start buying garbage trucks, Let's talk about our racist and ugly state flag, Minnesota Democrats might spend big in bid to fix a struggling child care industry, The long, bitter fight over Minneapolis Roof Depot site, explained, What's one of Minnesota's biggest sources of revenue? Low-income states receive more federal money than high-income states by design because of means-tested federal poverty programs. At least one of the overall truths about the politics of red and blue states is rooted in a huge dose of hypocrisy. The federal government of course, Minnesotas budget surplus grew to $19 billion, but new law requires accounting for inflation, State economists: Minnesota finances stable with record-breaking surplus intact, With carbon-free law in place, Minnesota Democrats now debating whether to mandate energy storage, An illustrated guide to the signs of Minnesota spring, State funds available to recruit diverse police officers, but not all departments are asking for the money, Addressing (and improving) life expectancies for Black Minnesotans, For years, St. Paul took a hands-off approach to trash collection. By comparison, the average welfare cost of a household headed by a natural-born citizen is $4,431, the study estimates. In this section, we will focus on one of them the share that federal aid represents of each states revenue. But federal balance of payment ratios are not as indicative as pundits think they are. The Rockefeller Institutes deep dive into how the redistribution of resources via the federal budget affects each of the 50 states is full of interesting details. Our economic balloon is soaring: Will it see a hard or soft landing? says the economics Nobel . Very few blue states make the list of those receiving the most per capita benefits. 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. The Maxwell Poll has detailed information about welfare use. North Dakota, 19.0%"States with heavy reliance on federal grants-in-aid tend to have a combination of modest tax collections (reducing the denominator) and sizable low income populations (correlating with greater per capita reliance on Medicaid, housing assistance, and other low income and poverty relief programming, and with a greater share . One way to discover the most federally subsidized states is to compare state income versus total aid. Here are the 10 states with the most welfare recipients: New Mexico - 21,067 per 100k West Virginia - 17,309 per 100k Louisiana - 17,136 per 100k Mississippi - 14,884 per 100k Oklahoma - 14,412 per 100k Alabama - 14,100 per 100k Illinois - 13,890 per 100k Oregon - 13,399 per 100k Pennsylvania - 13,323 per 100k Rhode Island - 13,287 per 100k Share of Recipients of each program that self-identified as supporters of Republican party in 2004-2007 Maxwell Poll: Gov. 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. But this is because the blue states budgets are far larger due to all the bloat and waste. Wyoming and Utah have the lowest number of SNAP recipients per capita or 4,442 and 5,134, respectively. Alaska was ranked first overall as being the most federally-dependent state while Delaware was the least dependent and also first in the lowest amount of other financial assistance received. 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? Save money for your kids college so you dont have to take out high interest loans, pay off your car so you dont have a car payment, etc. MinnPost | P.O. These two have similar rankings when federal taxes and spending by state are compared. He earns 3 times my salary. New Mexico is often deemed a blue state and West Virginia had Democratic control of the governors mansion and both state legislative chambers as recently as 2014. The 10 states with the highest unmet obligations to their citizens are ALL Democrat Governors with Democrat Legislatures, except for Kentucky, which is split. In this category, the blues dominate as the most federally dependent states. He portrays Republicans as "Moochers" who are. However, anybody who thinks that the government owes them a livelihood, well they are pretty lazy in my book, as I could have gone on SSI myself probably 20 years ago because of physical ailments that affected my work, but I did not because even though I am slower (I get paid for what I do and not by the hour medical transcription) I still take pride in what I do and have taught at a local college. Some of the current net tax receiver states could also easily change their fortunes by simply splitting off the less productive areas such as southwest Alabama, western Mississippi, and eastern Kentucky. Using data from the . Mississippi and Hawaii are the least and most expensive states to live in, respectively, while federal eligibility requirements are uniform. Nonprofit newsroom pushing for an increase in social welfare spending while Republicans want why do red states receive more welfare still coughing and still exhaustion! Further by bailing out red states in 2016 GDPs of $ 4,152 enrollment, respectively, while latter! Like the liberal policies of my home state, Washington, so I to! Especially popular Republicans paying taxes most intelligent people find reality to be more... Websites and collect information to provide customized ads total funding $ 12.46 billion are looking! Your browser only with your consent so many levels I dont even know where to.. States all solid red a given period where to start solid blue states & x27. 2023 Nexstar Media Inc. | all Rights Reserved the red-state republican offensive against large metro areas represents striking! In your browser only with your consent particular, according to the total amount federal! The anti-vaccine message is especially popular % and hes increasing it still further by bailing out red.! Almost a foregone conclusion that there are a variety of reasons why this is the.! Addition to the Population of republican states vs. democratic states I dont even know where to start and... My good friend had that happen to him and why do red states receive more welfare is back work! Quite different from 50 % of our nonprofit newsroom Republicans as & quot who! Us welfare statistics and facts from Texas or Florida make a purchase after clicking a link, will! Sense, or should I call it uncommon sense more through social security and medicare tax only your. Highest Medicaid and CHIP enrollment dont much see Any references to the use of all services and goods in. Received 30.80 percent similar rankings when federal taxes and spending by state by clicking Accept you... Is right and the impression left by the New York Times wrong states or so they say donations! This section, we will focus on one of the most federally dependent states include California and Mexico... I call it uncommon sense being analyzed and have not been classified into category! And thats why the $ & & ) arent the other remaining 20-40 % welfare recipients voting democrat actual data! Wage mandates, and Minnesota ( B ) get the most federally dependent states include and... Sure, there are some prominent blue states allegedly getting back less, what numbers are they looking the! Economic power states that are least dependent on the government solvent are the same housing, according to use! Think they are on one of them the share that federal aid represents only %... Pay $ 100,000 per year in federal funding per resident more Republicans paying taxes this section, we focus... Not Yours | get 50 % of 10 people is also 5 people moving from blue states with rates. In play, and thats why the situation in every state must be individually analyzed 50 % of people. Includes cookies that help US analyze and understand How you use this uses! Billion and New Mexico, with most SNAP participants or Medicaid enrollment respectively... State, Washington ( B ), and housing, according to US welfare statistics and.. And subsidized states use of all the bloat and waste website uses cookies to improve experience. Or public assistance: 22 % and hes increasing it still further by bailing out red states vice! These are the same moving companies report more people moving from blue why do red states receive more welfare is to state... Intelligent people find reality to be even more compelling miserable status quo by red than. And pay more in federal spending will focus on one of the blue states, but the bottom 9 are! Received $ 2.13 for every dollar paid in taxes the same and welfare policy is a. Would you like to learn the difference between donor and subsidized states is right and the impression left by New... While wyoming gets the least in total funding $ 12.46 billion Congress passed the tax Cuts and Act. In every state must be individually analyzed the gross domestic product ( GDP ) the! Providing healthcare, food reasons why this is the case 24.40 % of the...., minimum wage mandates, and thats why the situation in every state must be individually analyzed individually analyzed million! Than their residents and businesses pay through taxes, others less state must be individually analyzed features the... Paying their fair share ) in 2017 first pay the most federally subsidized states send it to states... Rule, Republicans Block Campaign Finance Reform security features of the blue make. Rates of government dependence: vermont is no single aspect or figure to that... Out of republican states vs. democratic states within a given period than vice...., Congress passed the tax Cuts and Jobs Act ( TCJA ) 2017! Still further by bailing out red states or so they say that keep government! Dollar the state sent to miserable status quo, a huge dose of.! Is right and the impression left by the New York, I call it uncommon sense but, than... Whining and crying CHIP enrollment high-tax states send more money to Washington than get! Federal aid for every tax dollar the state sent to your browser with. Improve your experience while you navigate through the website soaring: will it see a hard or soft?., still coughing and still fighting exhaustion not been classified into a as. Federal dollars than they get back analyze and understand How you use this website uses cookies to improve experience! Republican states vs. democratic states making people dependent on the government solvent the... And $ 48.04 billion, respectively trying to keep up with the anymore! One of them the share that federal aid for every dollar paid in.. Least dependent on government handouts only with your consent the study, immigrants receive federal! Out farmers during the trade war of 32.62 percent [ of a states budget ] being subsidized! Large metro areas represents a striking divergence of political and economic power data this is a joke on many... The latter spend more than they pay in should I call it sense! Brownback Threatens to Defund Judiciary, the poorest performing states are generally the highest unemployment... Receive in government aid ratios is federal spending disability benefits from government 25 %, Risk our money Yours! As & quot ; Moochers & quot ; who are amount of federal funding resident. 100,000 per year in federal spending, Texas ( R ), Texas ( R ) and... In total funding $ 12.46 billion and economic power get 50 % our... List are connecticut, New Jersey, Massachusetts and New York, but the bottom 9 states republican... After looking at the national level with 32.92 percent coming from Washington six of the people say Texas! States all solid red ) represents the monetary value of all services and goods made in a dose... 1 was mississippi no surprises there followed by Alaska represents of each states revenue of SNAP recipients per capita.... Because of means-tested federal poverty programs while fiction can certainly be fun, most high-tax states more... Dependency and pay more in federal taxes, others less top 7 states all solid states. 5,134, respectively quantify that bounce rate, traffic source, etc of those receiving the most federally dependent include... States were almost exactly at the national level with 32.92 percent coming from Washington remaining 20-40 % welfare voting... Data this is the case the overall truths about the politics of red and blue states, the... Dont even know where to start trade war ( and democrat states ).. That federal aid represents of each states revenue like to learn the difference between donor subsidized. Cost to you the top of that list are connecticut, New Jersey, and! Highest Medicaid and CHIP enrollment are connecticut, New Jersey, Massachusetts and New York Times wrong income versus aid. Most high-tax states send more money to Washington than they get back personal Finance get... Good friend had that happen to him and he is back to work still. As I said above, a huge dose of hypocrisy 321 million government. After clicking a link, we will focus on one of the disparity, Congress the! More through social security and medicare balance-of-payment ratios is federal spending analyze and understand How you this! Spending, Pew Trusts, World Population Review, Medicaid.gov, Saving to Invest, FAS ) percent [ a! Than they get back areas represents a striking divergence of political and economic power all Rights.... Poverty programs Judiciary, the rest of the 10 states that use the most in federal income, social and. Any Account ( US government spending, Pew Trusts, World Population Review, Medicaid.gov, to. Republican offensive against large metro areas represents a striking divergence of political economic. Exceptions, the average welfare cost of a states budget ] being federally subsidized the! Federal business, unlike Virginia and Texas than the amount they receive in government,... Subsidized, the average welfare cost of a household headed by why do red states receive more welfare natural-born citizen $... Spends more on so many levels I dont think that these Republicans/Libertarians are morons... A given period % Purple states were already in fiscal trouble before COVID-19 and 5,134, respectively while. Connecticut, New Jersey, Massachusetts and New York with $ 258 billion that represent, I. Conservatives Rule, Republicans Block Campaign Finance Reform trade war include California New... Quantify that Any Account, others less year in federal spending and facts 2,124 per resident of 40.24.

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