Taxes vs. Federal Spending
I’ve had a hunch for a long while that the distribution of Federal resources isn’t exactly. . . fair. (Gasp!) What’s more, I feel frustrated by the apparent disconnect between the people who assail Federal taxation and those who receive the most benefits. I’m especially worried about this as we enter a period of massive water shortages in the south east. But that’s for another day.
Consider the following:
What do you notice about the distribution? Does it seam fair and equitable? Hint : the colors are not random.
Please ponder this chart and reflect as you hear politicians from either side discuss their Federal spending policies. Who’s really benefiting? Who’s really paying?
[Source: Tax Foundation]
Filed under economics, politics : Comments (4) : Oct 25th, 2007 by tadfad
October 25th, 2007 at 10:26 pm
sons of bitches…
October 26th, 2007 at 6:52 am
The most important factor determining whether a state is a net beneficiary is per capita income. States with wealthier residents pay higher federal taxes per capita thanks to the progressive structure of the income tax. Other factors include whether states have powerful Members of Congress, the number of federal employees present in a state, and the number of residents receiving Social Security, Medicare and other federal entitlements.
October 29th, 2007 at 12:42 pm
Source?
October 29th, 2007 at 5:49 pm
I added my source, the Tax Foundation (taxfoundation.org) out of Washington DC. They seem pretty reputable, and frankly the data isn’t that secretive or hard to find.
Now I’m not trying to simplify things and say that the “red” states are bleeding the “blue” states; rather I just wanted to put some perspective on the question of who benefits/pays in the Federal system.