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A Maxwell Poll on the political affiliation of those in public assistance would indicate as much: Similarly, an NPR study of the long-term unemployed found that 72 percent favor Democrats, who are all likely to be receiving benefits. High-tax, traditionally Democratic states (blue), subsidize low-tax, traditionally Republican states (red) — in a big way. In 2015, for example, New Jersey got back only 74 cents in federal spending for every tax dollar its inhabitants sent to Washington, according to the Rockefeller Institute of Government. In fact, most high-tax states send more money to Washington than they get back in federal spending. It turns out residents of blue states send more tax money to Washington than they get back in federal help, while residents of red states send less money to Washington than they get back in federal help. But when you turn to the red states, it’s the opposite. Because most Americans figure we’re all in this together, we believe those of us who can do so ought to help out those in need. Mississippi received $2.13 for every tax dollar that its inhabitants sent to Washington. Red state budgets averaged 35.75% federal money. Once again, the top takers are almost all red states, while the most self-reliant states are almost all blue. Legal Statement. And it’s artificially dividing the country into “us” and “them.”. — "We are getting the federal government out of the business of subsidizing states. GET BREAKING NEWS IN YOUR BROWSER. Sorry, your blog cannot share posts by email. Recipients of those programs are disproportionately Republican, but this is a program 100% of people will eventually be eligible for, and it’s one received after paying into it over a lifetime, so it feels misleading at best to include, regardless of what you think about the programs. But that’s not even the biggest irony. And since people in blue states pay much more in state and local taxes than people in red states, blue-staters will be paying that much more in federal taxes. Countering those concerns, some leftists have resurrected the myth that it’s actually red states that are “welfare queens.” While this represents a pivot from the original argument (which is over states in better fiscal condition subsidizing those in worse), it is relevant, as it would imply that perhaps the reason red states are in better fiscal condition is because the federal government has been giving them an assist. As you comment, please be respectful of other commenters and other viewpoints. Related Articles And indeed, this would skew the stats when it comes to federal dollars coming to red states. While it is true that red states tend to have a larger percentage of their budgets subsidized by the federal government than blue states—but only because their budgets are relatively smaller. However, these states send far more tax dollars to Washington than residents in low-tax states. Even though the money to finance them comes mostly from taxpayers who aren’t currently dependent on these programs, we don’t begrudge their recipients because we assume that most of us will need these programs someday. An Associated Press Fact Check finds it's actually the other way around. In fact, social insurance is needed and used by almost all of us. Market data provided by Factset. Because the … Mississippi received $2.13 for every tax dollar the state sent to Washington in 2015, according to the Rockefeller study. As The Federalist’s Kyle Sammin notes: Against a national average of 32.62% [of a state’s budget] being federally subsidized, the blue states received 30.80%. David Brooks: What the voters are trying to tell us The federal program Temporary Assistance for Needy Families — what we used to call “welfare” — is now tiny. That’s why Social Security, Medicare and unemployment insurance are so popular. Add in disability benefits, unemployment insurance and medical benefits, and such rebranded “welfare” amounts to fully 17 percent of the average American’s income. Republicans are trying to eliminate the deduction as part of the sweeping tax package working its way through Congress. Related Articles here. Under the new tax law enacted by Trump and the Republicans, blue states will be giving even more “welfare” to red states. To quote directly from the book: It is first important to remember that states are not people. Quotes displayed in real-time or delayed by at least 15 minutes. It received 96 cents for every dollar the state sent to Washington. That’s kind of how nations work. But when you think broadly about all forms of government assistance, these same red states are often the biggest beneficiaries. By continuing to use the site, you accept our Privacy Policy and Cookie Policy. 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. Include price supports for agriculture, subsidies for land management and forestry, and defense contractors, and you find that a … California fared a bit better than other blue states. Mark L. Asquino: Stay alert until every vote is counted: A US election observer’s message Connecticut residents paid an average of $15,643 per person in federal taxes in 2015, according to a report by the Rockefeller Institute of Government. — Ryan said the rest of the country is "propping up profligate, big-government states.". People aside, what about the claim that red states as a whole receive more from the government? New York received 81 cents, Connecticut received 82 cents and Massachusetts received 83 cents. Which means an even bigger transfer going from blue-state residents to all those red-state Republican voters whose party despises handouts. WASHINGTON (AP) — Republican leaders have spent months promoting the myth that red low-tax states are subsidizing blue high-tax states because of the deduction for state … See our full terms of use Truth be told, the vast majority of Americans also oppose cuts to programs that aid the poor, elderly and sick. Purple states see the least of their money returned to them per capita, at just $1,770. Most low-tax states make a profit from the federal government's system of taxing and spending. Trudy Rubin: How the world views 2020 presidential election: It isn’t pretty Massachusetts paid $13,582 per person, New Jersey paid $13,137 and New York paid $12,820. After all, why should the taxpayers in states with the best fiscal condition (all of which are red states, by the way) have to subsidize bailouts for those who’ve racked up hundreds of billions in debt, such as New York and California? Robert B. Reich: How blue states subsidize red…, Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Twitter (Opens in new window), Click to email this to a friend (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Tumblr (Opens in new window), Submit to Stumbleupon (Opens in new window), Robert B. Reich: How blue states subsidize red states, David Brooks: What the voters are trying to tell us, Trudy Rubin: How the world views 2020 presidential election: It isn’t pretty, Jamelle Bouie: In spite of everything, Trump expanded his support, John Kass: No matter what happens, America will not return to ‘normalcy, Mark L. Asquino: Stay alert until every vote is counted: A US election observer’s message, Gov. Powered and implemented by FactSet Digital Solutions. In reality, voters in red states are as dependent on the federal government as voters in blue states. Truth be told, even more dependent. By continuing to use the site, you accept our. But defined this broadly, a large chunk of America relies on welfare — including a lot of people who wouldn’t like to think of themselves as being on the dole. Robert Reich’s latest book is “The Common Good,” and his newest documentary is “Saving Capitalism.” He wrote this column for Tribune News Service. On average, states received $1.14 in federal spending for every tax dollar they sent to Washington. An Associated Press Fact Check finds it's actually the other way around. If you include price supports for agriculture, subsidies for land management and forestry, and federal money flowing to defense contractors, you’ll find that the economies of red states depend heavily on federal dollars. The term “welfare” is especially unpopular in red states that vote Republican and support Trump. But the Trump administration is proposing to lump many other social programs under a new agency with the word “welfare” in its title, in order to make Americans think we’re living in a vast welfare state. A recent White House report on imposing work requirements, for example, lumps Medicaid, food assistance and housing aid into a rebranded program called “noncash welfare.”. We reserve the right to remove any comment we deem to be defamatory, rude, insulting to others, hateful, off-topic or reckless to the community. Your analysis that low tax states subsidize high tax states is total bull.