These states are the biggest sponges on the federal Treasury

on Feb26
by | Comments Off on These states are the biggest sponges on the federal Treasury |

Connecticut taxpayers, the federal government thanks you. So should Virginia, Kentucky and New Mexico, for that matter.

That’s because no other state pays more in net taxes on a per-capita basis than the Nutmeg State. In other words, Connecticut pays $4,000 more per person than it brings in from the government, according to a recent SUNY report.

On the other end of the spectrum, Virginia taxpayers take in more than $10,000 per capita than they pay out — the biggest imbalance of any state.

Cost-estimating website HowMuch.net used the findings to create this map, which illustrates that 40 out of the 50 states are getting more from the federal government than they are paying in taxes:



As you can see, the pink shows taxes paid to the federal government, while the green shows how much the feds sent back in the form of expenditures, which covers things like Social Security, contracts for local governments, wages for federal workers, sub-contracting work, etc.

(If there’s one drawback to this kind of analysis, is that it doesn’t measure the benefit of those contracting dollars.)

The chart ranks all the states moving clockwise from high to low on to illustrate the net difference between the two figures. The South, with its high poverty rates, understandably dominates the most dependent side of the spectrum, while the wealthier Northeast takes the biggest hit.

Of note, the Golden State is the closest to breaking even at a minimal difference of $12 per person. “California looks small only because it’s a per capita figure,” HowMuch.net’s Raul Amoros explained. “In reality, we’re talking about billions of dollars in money flowing back and forth.”

Here’s another way to look at it, via SUNY:





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