Producer States Transfer Wealth to Tax Consuming States
February 28th, 2009 | by BGuzzardi |
Federal Tax Burdens and Expenditures by State. Note this is a March 16, 2006 report, about two years ago. The report discusses changes over time so these results may have changed by March 2009. Nevertheless, the analysis stimulates a heuristic inquiry into who are the federal tax producers and who are the federal tax consumers. In 2006, for example, New Mexico had federal spending-to-tax ratio of 2.00, that is, New Mexico received two federal tax dollars for every federal tax dollar its citizens and businesses paid to the federal government. There is a change over time from 1994 to 2004.
Figure 1 (on page 2) is a graphic overview. The higher the ratio; the more federal tax dollars a state receives compared to what is sends to central, federal government. Note California, Nevada, Texas, Colorado and New York receive less than they produce in federal tax dollars. New Hampshire seems to be the biggest loser with a .87 ratio.
Note, also, the chart on page 8 of all taxes: Social Security ( 39.7%), Corporate (10.2%), Individual ( 43.8 %, the largest source of federal dollars sent).
I don’t know if there is a more current report being produced.