Sunday, May 18, 2014

States Dependent On The Federal Government

This is an interesting story I came across.  Which state is better off, Delaware or New Mexico?

"The extent to which the average American’s tax burden would vary based on his state of residence represents a significant point of differentiation between state economies.  But it’s only once piece of the puzzle.

What if, for example, a particular state can afford not to tax its residents at high rates because it’s receiving disproportionately more funding from the federal government than states with apparently oppressive tax codes?  That would change the narrative significantly, revealing federal dependence where bold, efficient stewardship was once thought to preside.

The idea of the American freeloader burst into the public consciousness when #47percent started trending on Twitter.  And while the notion is senselessly insulting to millions of hardworking Americans, it is true that some states receive a far higher return on their federal income tax investment than others.

Just how pronounced is this disparity, and to what extent does it alter our perception of state and local tax rates around the country?  WalletHub sought to answer those questions by comparing the 50 states and the District of Columbia in terms of three key metrics:  1) Return on Taxes Paid to the Federal Government; 2) Federal Funding as a Percentage of State Revenue;  and 3) Number of Federal Employees Per Capita.

More information about the significance of these data points as well as a comprehensive state-by-state rankings breakdown can be found below."

I remember when Bob Evans became very disenchanted with Ohio and moved his corporation to Delaware.  Some things haven't changed since then!

Ed

3 comments:

  1. The differences across states about everything, from education to taxes, really bugs me. The role of the local legislation far exceeds what local government should be about, and is obsolete in many ways. Think for instance about what it takes to sell any item from one state to another, which has a different sales tax that should be collected by the seller. Each state has their own sales tax regimen and dozens of exceptions to it, how are people supposed to handle this? Even software is only as good as what you input.

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  2. That is a problem. I couldn't believe the problems of getting food into and out of Hawaii. I don't know if Alaska is much different.

    http://www.ushistory.org/gov/3c.asp

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