Red/Blue State Tax Return debate

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They compared the 50 states and the District of Columbia on three metrics: 1) federal spending per capita compared with every dollar paid in federal income taxes; 2) the percentage of a state’s annual revenue that comes from federal funding; and 3) the number of federal employees per capita. The third measure received only half the weight of each of the others in the calculation.

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Part of the explanation for why southern states dominate the “most dependent” category is historical. During the many decades in the 20th century when the South was solidly Democratic, its congressional representatives in both the House and the Senate, enjoying great seniority, came to hold leadership positions on powerful committees, which they used to send federal dollars back to their home states in the form of contracts, projects, installations.

Another part of the explanation is easier to discern. The reddest states on that map at the top—Mississippi, Alabama, Louisiana, New Mexico, Maine—have exceptionally high poverty rates and thus receive disproportionately large shares of federal dollars. Through a variety of social programs, the federal government disburses hundreds of billions of dollars each year to maintain a “safety net” intended to help the neediest among us. Consider, for example, the percentage of each state’s residents who get “food stamps” through the federal government’s SNAP program. This chart tells the story.

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