Tuesday, February 15, 2005

"Starving the beast": Red, blue and federal welfare: more "pork" to the red states, blue are biggest losers (pay more, get less)

P-I Focus: Red and blue and the color of money: "SEATTLE POST-INTELLIGENCER | http://seattlepi.nwsource.com/opinion/211080_sciglianomoney.html | Sunday, February 13, 2005"

Only five blue states are net recipients of federal subsidies; only two red states are net payers of federal taxes
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In 2003, the top subsidy-sucking state, in percentage terms, was red-lite New Mexico, which received $1.99 in federal money for every dollar it sent to Washington, D.C. All the next eight net recipients of federal spending were redder yet: Kentucky, Virginia, Montana, Alabama, North Dakota, West Virginia, Mississippi and Alaska, which received $1.60 to $1.89 back for each tax dollar.

The list of net losers in the state-federal exchange, by contrast, reads like a Who's Who of Blue. Two of the top 14 were traditionally red Western states that are starting to turn purple, Colorado and Nevada. The other 12 are all blue: California, Connecticut, Delaware, Illinois, Massachusetts, Michigan, Minnesota, New Hampshire, New York, Washington, Wisconsin and the biggest chump of all, New Jersey, where the federal government spends just $.57 for every dollar it collects. Clearly Tony Soprano did not negotiate this deal.

Only five blue states were net recipients of federal subsidies. Only two red states were net payers of federal taxes. Washington, despite its large military presence and big defense contractor The Boeing Co., received just 90 cents on its federal tax dollar. Oregon and swinging Florida are perfect washes: They received one federal dollar for every dollar they paid in taxes.
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What is not a factor, Ahern declares, is the greater political clout of the Republicans, who now control every branch of federal government for the first time since Reconstruction. But the numbers suggest that pork may play a part. The biggest recent losers in this sweepstakes, those whose balance of payments has improved most, tend to be red: Alabama, Alaska, Arkansas, Kentucky, South Carolina, South Dakota, Tennessee and Virginia. The biggest losers, those that are paying more and getting less, are blue: California, Massachusetts, Minnesota, New Jersey and New York.
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The results, when you crunch the fragmented state data, are striking. In 2003, according to the Tax Foundation data, the blue states contributed $966 billion to the federal Treasury and got $830 billion back. The reds paid $697 billion and received a whopping $909 billion. Welfare queens, indeed.

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