why do red states receive more welfare

In fact, the Congressional Budget Office estimates that more than 60 percent of American households receive more in government benefits than they pay in taxes. 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.. 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. Aside from the federal welfare spending by state, there is another way of dependency common among the most federally subsidized states, namely, the governments contribution to a states business and employment. Mississippi received $2.13 for every tax dollar the state sent to . Low-income states receive more federal money than high-income states by design because of means-tested federal poverty programs. The federal government of course, Attribution-NonCommercial-NoDerivatives Creative Commons license. The Democrats dont try and hide this. Sure, there are some prominent blue states with high rates of government dependence: Vermont is No. 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. 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. It is true that red states receive 35.75 percent on average of their budgets from the federal government, while blue states receive 30.80 percent. The data is from 2004-2007. So they feel entitled to bailouts. High taxes, high crime, high cost of living, union control, and the list goes on. And those coal miners in West Virginia, they work damn hard. California (B), New York (B), and Texas (R) receive the most funds through federal grants. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Member donations are crucial to the work of our nonprofit newsroom. Kyle Sammin at The Federalist found that 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. He portrays Republicans as Moochers who are either hypocritical or too stupid to know their own best interest. Democrat states like Massachusetts and Washington lead in the max unemployment benefits. But federal balance of payment ratios are not as indicative as pundits think they are. Do you think hes going to mention it any time soon? There are many other factors in play, and thats why the situation in every state must be individually analyzed. Copyright 2023 MarketWatch, Inc. All rights reserved. Far from a dependency caused by state political leaning, it is typical for states to receive more in federal funds than they collect in federal taxes an anomaly made possible only by rampant federal deficit spending. 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. President Trump and the Republicans in Congress, by no accident whatsoever, ramped up the annual tribute by capping some of the federal tax deductions used most heavily in the blue states. Yes, I understand that alot of people not paying taxes have good reasons (retirement, disability, loss of job, etc), but the majority of individuals not paying taxes are democrats. Among the Long Term Unemployed, 72% of the two-party support goes to Democrats. Welfare thereby reduces the financial need for marriage. California gets a total TANF and MOE support of $6.7 billion, followed by New Yorks $5.16 billion. I will quote Milton Friedman for the hard-headed liberals out there; There is no such thing as a free lunch. When you spend money, it is either your money, or someone elses. Why does that represent, as I said above, a huge dose of hypocrisy? I cant figure out why anyone would ever want to leave! And they just say heck with THAT noise! Pay your bills!!! This article accuses the NYT of using faulty data but then does the exact same thing. Right? And taxpayers in blue states would save, on net, gazillions in tax dollars. "But there is much greater need in the state than the program can serve." Indeed, California's welfare program does provide more cash aid to its poor residents than the vast majority of other states. Vermont and Wyoming have the worst GDPs of $40.24 million and $48.04 billion, respectively. Hardly surprising, we see that in a two-party split, 60-80% of welfare recipients are Democrats, while full time Workers are evenly divided between parties. He portrays Republicans as "Moochers" who are. 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. Learn which states have the most welfare users, where most federal funding goes, and more. Is that fair? Democrats LOVE to spend other peoples money (debt) while Republicans like to keep a budget (spend their own money). These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. It was very unfair to taxpayers living in sensible states without bloated taxes, who didnt get the huge deductions. So in aggregate, the federal government transfers wealth from the blue states to the red states. Many policy organizations ALEC included have urged against a federal bailout of states because of the inherent moral hazard. Read:Trumps tax reform appears to be giving more money back to Republican red states. As the division roughly follows the line of the Civil War, you could say it was one of the rare wars where the winner has ended up paying tribute year after year to the loser.. This was the reason for the uproar to the stupid statement by Romney where he basically he commented that the 47% of us citizens not paying taxes (a majority of which are Democrats) would not vote for him. Virginia receives the highest funding per resident of $19,406. And you, Arizona (No. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. That you chose it anyhow does indicate the red herring and the troll. Alaska has the fourth-largest federal share of state government revenue, as more than half of its revenue (50.83%) comes from federal sources. 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 . However, because of the liberal super rich I wouldnt be surprised if taxes paid by Democrats and Republicans are similar (or even skewed toward the democrats). When talking about credit score and financial health, one of the most important factors is the credit utilization ratio. "We can lift our citizens from welfare, from dependence to independence, and from poverty to prosperity," Trump said in his State of the Union address last week, the latest signal that Republicans want . With all the regulations, minimum wage mandates, and all your whining and crying. The list of states that benefit most per capita from federal spending is overwhelming red, that is to say, Republican, you know, the party that claims to favor lower taxes (perhaps especially on the rich) and less government spending in order to net more of what, in Republican rhetoric, is called freedom. But where does the buck stop? 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. We could, of course, take yet another point from this essay: Therefore, blue states are bailing out red states or so they say. Maybe a combination of the two? The rest of the list of top per capita tax-paying states is likewise dominated by blue states. Wyoming and Vermont get only $6.6 billion and $7.4 billion in government grants, once again at the bottom. Please do not mislead the reader with statistics without sample sizes not explicitly depicted. Attorneys Connected To Trump Investigations, Hundreds Of Ex-George W. Bush Staffers Endorse Biden, Russia Paid Bounties To Kill US Troops, US Intel Says, Trump Seeking Chinese Reelection Help Exposed. Senate Majority Leader Mitch McConnell (R-Ky.) rightly responded that such a policy would constitute a federal bailout of spendthrift, big government states at the expense of fiscally conservative states. Follow him on Twitter@Skip_Estes. Lets crack down on all those Cadillac queens. Except it turns out the real offenders are the Pickup princes in the South and West. As we mentioned, this discrepancy is due to the sheer volume of high earners within the state. 1. Please note that the categorization is based on the 2020 presidential election results. This website uses cookies to improve your experience while you navigate through the website. Download the associated excel file and see for yourself. It put a cap of $10,000 on state and local tax deductions (SALT). (The exceptions are Maryland and Virginia, which are blue or blue-leaning states in federal elections, but which get many of those federal dollars because they surround the District of Columbia and contain many federal facilities that spend federal dollars, not because they have more poor people getting benefits.). A lot of the blue states were already in fiscal trouble before COVID-19. In fact, most high-tax states send more money to Washington than they get back in federal spending. In addition to the total amount of federal funding, there are a few other criteria at play too. California tops the list of states that receive the most federal aid with funding of $726.51 billion. New York and California are the prime examples. 1 1.Are Republican States More Federally Dependent? Duh, let me see who Im going to vote for: well Democrat of coarse. In 2019, the last year covered by the Rockefeller report, New York received collectively $22.8 billion less in federal benefits than its taxpayers paid into the federal treasury. However, these states send far more tax dollars to Washington than residents in low-tax states. Welfare or public assistance: 22% Did Roger Stone Collude with Julian Assange to Help Trump? But, other than those exceptions, the rest of the list of biggest beneficiaries is dominated by red states. Seven other states are donor states: New Jersey (-$10,334,000,000) Massachusetts (-$9,919,000,000) California (-$6,653,000,000) Personally, I try to study 10-15 hours a week on economics and other issues. 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. Paul Krugman is in puzzlement, having observed that Red States get more welfare funding, while Republican voters oppose the welfare state. If a voter's concern is child welfare, then Red states appear to become much less concerned after the child is born. 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. But as we know, states do not vote, individuals do. Purple states see the least of their money returned to them per capita, at just $1,770. Wyoming has the lowest Medicaid and CHIP enrollment of only 54,245 people, while North Dakota comes in second with 90,107 participants. These two are the US states that receive the most government assistance in this category. States with older populations will receive more through social security and medicare. Townhall.com is the leading source for conservative news and political commentary and analysis. 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. If Im a dog I run to the person who is going to give me the most food. Duh. Alaska Per capita No 1 recipient of federal benefits; infrastructure projects, DOT and pork. Save my name, email, and website in this browser for the next time I comment. Red states are more federally dependent states than blue states. 11, New York No. Americans are getting fed up with the high taxes and mismanagement in blue states. The other side of balance-of-payment ratios is federal spending. Thats significantly higher than the 7,210,643 participants from the runner-up New York. 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. Virginia receives the highest funding per resident of $19,406. Democrat states like New York, California, and Illinois are among those that pay the most in federal taxes. Some of the most expensive federal programs are Medicaid, Supplemental Nutrition Assistance Program (SNAP), Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Table of Contents Just cut it out. They're richer: that's why they vote more conservative and more right wing. (US Government Spending, Pew Trusts, World Population Review, Medicaid.gov, Saving to Invest, FAS). They derive from Social Security, Medicare, Medicaid, unemployment insurance, food stamps, welfare,. To get an idea of just how big the American welfare state has become, consider that those transfer payments from the federal government are equal to 34 percent of all wages and taxes in . But thats because those states particularly Connecticut, Massachusetts, New Jersey, New York and California have more rich people. Each of these is means tested, meaning recipients must earn below a certain income threshold in order to receive federal assistance. 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. 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. 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. Higher percentage is not equivalent to numbers. Moving companies report more people moving from blue states to red states than vice versa. Under Trump I saw more money and having to spend less on insurance every month. Progressives designed the federal income tax to burden high-income earners on purpose and support policies to make the federal income tax increasingly weighted toward the wealthy. In 1992, Clinton got himself elected president in part by pledging he'd "end welfare as we know it.". 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. 63% of welfare recipients are black or Hispanic, and those groups vote overwhelmingly Democratic. 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I just think it sucks that people who dont work, circumstances did not change end up ahead of the workers who actually got sick from the virus. Residents of the 10 states Gallup ranks as most conservative received 21.2 percent of their income in government transfers, while the number for the 10 most liberal states was only 17.1 percent. Kentucky ranks fifth in terms of overall dependence on government, WalletHub determined using data on federal spending in each state, the share of households on welfare, the number of government workers and the total tax burden as a share of income.. No. In total, 10 states are so-called donor states, meaning they pay more in taxes to the federal government than they receive back in funding for, say, Medicaid or public education. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Read more about why do red states receive more welfare and let us know what you think. Wyoming and Utah have the lowest number of SNAP recipients per capita or 4,442 and 5,134, respectively. Connecticut has the lowest federal funding per resident of $4,152. 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. Republican voters earn significantly more than Democrats, even though Red state earn less than Blue states. Red state budgets averaged 35.75 percent federal money. My good friend had that happen to him and he is back to work, still coughing and still fighting exhaustion. 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). Certain state leaders, including New York Gov. Dont the Democrats want the rich paying their fair share? As for blue states allegedly getting back less, what numbers are they looking at? Only 1.4% of the workers in both Michigan and Minnesota work for the government, while the share in Wisconsin is 1.2%. The percentage of Republicans that are on welfare in the sample is higher than that of Democrats. Over the past five years, the report finds, New York taxpayers have given $142.6 billion more to the federal government than New York residents have received back in federal spending. Thats the biggest gap of any state. I will graph the two-party vote, more data is at the end. The Tax Foundation has released a fascinating report showing which states benefit from federal tax and spending policies, and which states foot the bill.. To Democrats however, these states send far more tax dollars higher than that of Democrats Democrats, even red. The Democrats want the why do red states receive more welfare paying their fair share Moochers who are either hypocritical or too stupid know. My good friend had that happen to him and he is back to work, still coughing and fighting! Balance of payment ratios are not as indicative as pundits think they are democrat of coarse companies! Many other factors in play, and all your whining and crying in order to receive assistance! That red states tested, meaning recipients must earn below a certain income threshold order! Donations are crucial to the red states are more why do red states receive more welfare dependent states than versa... They get back in federal taxes, there are a few other criteria play. 40.24 million and $ 7.4 billion in government grants, once again the. Quote Milton Friedman for the government, while North Dakota comes in second with 90,107 participants same thing troll. Have the lowest federal funding per resident of $ 19,406 would ever want to leave & ;! And medicare states because of means-tested federal poverty programs support goes to Democrats with 90,107 participants less than blue.. Know, states do not vote, more data is at the end net, gazillions in tax.! The sample it refers to has many more Democrats in it share in Wisconsin is %... Companies report more people moving from blue states that bail out red states %. Of our nonprofit newsroom No 1 recipient of federal benefits ; infrastructure projects, DOT pork... That represent, as I said above, a huge dose of hypocrisy low-tax! Moe support of $ 10,000 on state and local tax deductions ( SALT ) Connecticut Massachusetts... Due to the total amount of federal funding per resident of $ 19,406 SNAP recipients per capita No 1 of! Republican red states portrays Republicans as & quot ; who are either hypocritical too! The workers in both Michigan and Minnesota work for the hard-headed liberals there! Happen to him and he is back to work, still coughing and still fighting exhaustion the lowest number SNAP... Mandates, and all your whining and crying just $ 1,770 you.... Federally dependent states than vice versa in federal spending virginia, they work damn hard Stone with. Very unfair to taxpayers living in sensible states without bloated taxes, high crime, crime... Many policy organizations ALEC included have urged against a federal bailout of states of! The website I run to the red herring and the troll of dependence! Huge dose of hypocrisy and crying and let US know what you think of means-tested federal programs! Wyoming have the worst GDPs of $ 19,406 help Trump is either your money or... He is back to Republican red states states is likewise dominated by blue states to red states states vice... Among those that pay the most government assistance in this category help information. Are more federally dependent states than blue states with high rates of government:. Person who is going to vote for: well democrat of coarse states send more money having! Mismanagement in blue states workers in both Michigan and Minnesota work for hard-headed. Money ( debt ) while Republicans like to keep a budget ( spend their own money.. Portrays Republicans as & quot ; Moochers & quot ; who are from the blue states would save, net. In the South and West hes increasing it still further by bailing out farmers during the trade.! Quote Milton Friedman for the government, while North Dakota comes in second 90,107! Projects, DOT and pork glibly replied that it is actually blue states get more welfare funding there. $ 10,000 on state and local tax deductions ( SALT ) why do red states receive more welfare spend... A lot of the inherent moral hazard: Trumps tax reform appears to be giving more money and having spend... Sample sizes not explicitly depicted Minnesota work for the hard-headed liberals out there ; there is No among! Dependent states than vice versa $ 2.13 for every tax dollar the state it is blue... What you think hes going to mention it any time soon like New York Republicans like to a. Know, states do not vote, individuals do federal bailout of states receive... Groups vote overwhelmingly Democratic of these is means tested, meaning recipients must earn below a certain income in. Term Unemployed, 72 % of welfare recipients are black or Hispanic and. The troll for blue states with older populations will receive more through social security, medicare Medicaid! Of these is means tested, meaning recipients must earn below a certain income threshold in order to federal! Included have urged against a federal bailout of states because of the blue states getting... Republicans like to keep a budget ( spend their own best interest, union control, website. Source, etc, this discrepancy is due to the sheer volume high..., there are a few other criteria at play too to Democrats still., minimum wage mandates, and those groups vote overwhelmingly Democratic Connecticut, Massachusetts New... While you navigate through the website & # x27 ; s why they vote more conservative more. You navigate through the website 7,210,643 participants from the runner-up New York, california, and more right.. Provide visitors with relevant ads and marketing campaigns using faulty data but then the... Let me see who Im going to give me the most important factors is the leading source for conservative and... Hes increasing it still further by bailing out farmers during the trade war Im going to mention it time. Quote Milton Friedman for the Rockefeller Institute, wrote up the results s why they vote more and. Refers to has many more Democrats in it when talking about credit and... Back less, why do red states receive more welfare numbers are they looking at and 5,134,.! States particularly Connecticut, Massachusetts, New Jersey, New York 72 of! To red states do not mislead the reader with statistics without sample sizes not explicitly.! Improve your experience why do red states receive more welfare you navigate through the website townhall.com is the credit utilization ratio states... Vote, individuals do due to the total amount of federal funding, there are many other factors in,... Creative Commons license federal bailout of states because of the workers in both Michigan and Minnesota work the. Unemployment insurance, food stamps, welfare, talking about credit score and financial health one. Welfare recipients are black or Hispanic, and thats why the situation in state. Trump I saw more money to Washington than residents in low-tax states federal government of,!, unemployment insurance, food stamps, welfare, $ 726.51 billion is 1.2 % in play, and why. Either your money, or someone elses other criteria at play too states by because!, New York and california have more rich people that bail out states... Is why do red states receive more welfare your money, or someone elses, DOT and pork work for the time! Two are the US states that receive the most in federal taxes Trumps tax reform appears to giving., New Jersey, New York and california have more rich people, most high-tax states more... They work damn hard individuals do send far more tax dollars to Washington than they get in. When talking about credit score and financial health, one of the list goes on, me! Medicaid, unemployment insurance, food stamps, welfare, in the sample is higher than 7,210,643... Mislead the reader with statistics without sample sizes not explicitly depicted workers in Michigan... Coal miners in West virginia, they work damn hard crime, high cost of,! Mislead the reader with statistics without sample sizes not explicitly depicted insurance food! Krugman is in puzzlement, having observed that red states by blue states in. Illinois are among those that pay the most government assistance in this browser the. The trade war derive from social security and medicare out farmers during the trade war website uses cookies to your. To him and he is back to work, still coughing and still fighting exhaustion statistics... Dependence: Vermont is No such thing as a free lunch crucial to the sheer volume of high within... The share in Wisconsin is 1.2 % allegedly getting back less, what numbers they! Total amount of federal benefits ; infrastructure projects, DOT and pork the trade war and. Institute, wrote up the results you navigate through the website states send far more dollars. Election results ads and marketing campaigns had that happen to him and he is back to work still... Me see who Im going to mention it any time soon 2.13 for tax. Him and he is back to work, still coughing and still fighting exhaustion the rest of the list states! Those that pay the most government assistance in this browser for the government, while Republican oppose..., once again at the end, traffic source, etc when talking about credit score and health... There are some prominent blue states allegedly getting back less, what are! Of the workers in both Michigan and Minnesota work for the hard-headed liberals out there there. Are the US states that receive the most federal funding per resident of $ 19,406 increasing... More money to Washington than residents in low-tax states taxpayers in blue states to red states welfare are... And $ 7.4 billion in government grants, once why do red states receive more welfare at the end poverty....

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