Red states lead the MOST dependent list....Blue states lead the LEAST dependent list 😲
And who is leading the "Secession" discussion? The most dependent, loser states
https://finance.yahoo.com/news/where-tax-dollars-states-most-142938519.html
These States Are Most Dependent on the Federal Government
Jaclyn DeJohn
Sat, June 17, 2023 at 9:08 AM EDT·8 min read
In 2022, the federal government spent $6.27 trillion1. Most of the government’s revenue comes from taxes collected from individuals and businesses across the U.S. Though taxes are mostly collected by the federal government, individual states are primary recipients of that same tax revenue. In a way, tax inflows and outflows act as a form of wealth redistribution among U.S. states.
To find out which states are most and least reliant on the federal government – and thus taxpayers from other states – SmartAsset evaluated tax and government spending data to determine which states are getting the best and worst return for their tax dollars.
Key Findings
States Most Dependent on the Federal Government
1. New Mexico
New Mexico pays an inexpensive $0.85 to the federal government for every dollar of support received. “Brain drain” – where highly educated workers leave for better opportunities elsewhere – has been a problem for New Mexico’s economy2. Left behind are a particularly high number of residents 65 and older.
2. West Virginia
West Virginians end up getting back almost every dollar they submit to the federal government – paying $1.04 for every dollar redistributed back to their state.
With a poverty rate of 16.8%3, West Virginia also placed third in a recent SmartAsset study determining states where residents are financially hurting the most. Additionally, just about 22% of residents have completed a college education – less than any other state in the nation.
3. Alaska
Being uniquely situated away from the United States mainland and in a particularly harsh climate, Alaska requires more support than most states. The state pays in about $1.09 for every support dollar it receives, and in 2022 had the third smallest state GDP.
If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
4. Mississippi
Mississippi has a handful of factors working against its economic independence, leading it to receive $1 from the federal government for every $1.19 it collects from residents, businesses and transactions. The state has historically ranked high in poverty and low in education – Mississippi also ranked as the second most state where residents are hurting financially in a recent SmartAsset study. It’s also prone to natural disasters that require cleanup.
5. Montana
Known for much of its natural scenery, Montana is also home to a number of federal agencies, of which a few maintain landmarks like the Yellowstone and Glacier National Park. The Treasure State received roughly $5.1 billion from the federal government in 2021 and paid back approximately $1.53 for every federal dollar received.
States Least Dependent on the Federal Government
1. Minnesota
Between personal and corporate income taxes, excise taxes, estate taxes and gift taxes, Minnesota contributes $6.88 to the federal government for every dollar it receives for support. As the least dependent state on the federal government, Minnesota has a median household income of around $77,720 – above the U.S. median of $69,717 – and is the fifth most prominent agricultural state4.
2. New Jersey
New Jersey’s dense population, proximity to New York City and Philadelphia, beaches, and a major port and airport are an effective combination for a productive economy. New Jersey also has a particularly educated workforce, which helps support the internal economy: With 41.5% of residents completing college5, it ranks fourth in the nation for 2017-2021. For every $6.28 New Jersey forks over to the federal government, it receives $1 back.
3. Delaware
More than 65% of Fortune 500 companies in the United States are incorporated in The First State6, which is known for its business-friendliness. Delaware pays roughly $32.3 billion to the federal government in collective taxes or $6.09 for every federal dollar received.
4. Illinois
Illinois is the sixth most populous state at over 12.5 million people – it’s also got the fifth largest GDP by state7,8. And by contributing $5.88 tax dollars for every $1 in returned to it, Illinois also takes the fourth place spot for least dependent on the federal government. Chicago’s location on the Great Lakes makes it an economic hub for the midwest, and like Minnesota, it is one of the top 10 agricultural states by production in the U.S.
5. Florida
The Sunshine State is the fifth-least dependent state on the federal government contributing $5.78 tax dollars for every $1 in federal aid it receives. As a popular tourist destination, Florida had the fourth largest GDP of all states in 2022.
And who is leading the "Secession" discussion? The most dependent, loser states
https://finance.yahoo.com/news/where-tax-dollars-states-most-142938519.html
These States Are Most Dependent on the Federal Government
Jaclyn DeJohn
Sat, June 17, 2023 at 9:08 AM EDT·8 min read
In 2022, the federal government spent $6.27 trillion1. Most of the government’s revenue comes from taxes collected from individuals and businesses across the U.S. Though taxes are mostly collected by the federal government, individual states are primary recipients of that same tax revenue. In a way, tax inflows and outflows act as a form of wealth redistribution among U.S. states.
To find out which states are most and least reliant on the federal government – and thus taxpayers from other states – SmartAsset evaluated tax and government spending data to determine which states are getting the best and worst return for their tax dollars.
Key Findings
- New Mexico is the only state paying less in taxes than it receives in support – paying only 85 cents in federal taxes for each dollar of support. This was the only state with that paid less in federal taxes than it received back. The next four most dependent states – West Virginia, Alaska, Mississippi and Montana – receive nearly as much in support as they send to the federal government each year. Hawaii, Vermont, Louisiana, Alabama and Wyoming also top the list of most dependent states.
- Minnesota, New Jersey, Delaware, Illinois and Florida are least dependent on the federal government. These states all contribute multiples more to the federal government than they receive, with residents paying at least $5 in taxes for every $1 in direct support received from the federal government. Minnesota – the least dependent state – pays nearly $6.88 in taxes for each dollar it receives back. Other states that made the top 10 least dependent list include Washington, South Dakota, Massachusetts, Nebraska and California.
- Texas’s love of vices disproportionately supports federal income. Texas pays an exorbitant $17B in excise taxes to the federal government – more than any other state by far and more than the income taxes on Texas’s top 1% of earners. Texas pays nearly three times as much in taxes on items like alcohol, gas, cigarettes, gambling and other specialty items as the second most state, Ohio.
States Most Dependent on the Federal Government
1. New Mexico
New Mexico pays an inexpensive $0.85 to the federal government for every dollar of support received. “Brain drain” – where highly educated workers leave for better opportunities elsewhere – has been a problem for New Mexico’s economy2. Left behind are a particularly high number of residents 65 and older.
2. West Virginia
West Virginians end up getting back almost every dollar they submit to the federal government – paying $1.04 for every dollar redistributed back to their state.
With a poverty rate of 16.8%3, West Virginia also placed third in a recent SmartAsset study determining states where residents are financially hurting the most. Additionally, just about 22% of residents have completed a college education – less than any other state in the nation.
3. Alaska
Being uniquely situated away from the United States mainland and in a particularly harsh climate, Alaska requires more support than most states. The state pays in about $1.09 for every support dollar it receives, and in 2022 had the third smallest state GDP.
If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
4. Mississippi
Mississippi has a handful of factors working against its economic independence, leading it to receive $1 from the federal government for every $1.19 it collects from residents, businesses and transactions. The state has historically ranked high in poverty and low in education – Mississippi also ranked as the second most state where residents are hurting financially in a recent SmartAsset study. It’s also prone to natural disasters that require cleanup.
5. Montana
Known for much of its natural scenery, Montana is also home to a number of federal agencies, of which a few maintain landmarks like the Yellowstone and Glacier National Park. The Treasure State received roughly $5.1 billion from the federal government in 2021 and paid back approximately $1.53 for every federal dollar received.
States Least Dependent on the Federal Government
1. Minnesota
Between personal and corporate income taxes, excise taxes, estate taxes and gift taxes, Minnesota contributes $6.88 to the federal government for every dollar it receives for support. As the least dependent state on the federal government, Minnesota has a median household income of around $77,720 – above the U.S. median of $69,717 – and is the fifth most prominent agricultural state4.
2. New Jersey
New Jersey’s dense population, proximity to New York City and Philadelphia, beaches, and a major port and airport are an effective combination for a productive economy. New Jersey also has a particularly educated workforce, which helps support the internal economy: With 41.5% of residents completing college5, it ranks fourth in the nation for 2017-2021. For every $6.28 New Jersey forks over to the federal government, it receives $1 back.
3. Delaware
More than 65% of Fortune 500 companies in the United States are incorporated in The First State6, which is known for its business-friendliness. Delaware pays roughly $32.3 billion to the federal government in collective taxes or $6.09 for every federal dollar received.
4. Illinois
Illinois is the sixth most populous state at over 12.5 million people – it’s also got the fifth largest GDP by state7,8. And by contributing $5.88 tax dollars for every $1 in returned to it, Illinois also takes the fourth place spot for least dependent on the federal government. Chicago’s location on the Great Lakes makes it an economic hub for the midwest, and like Minnesota, it is one of the top 10 agricultural states by production in the U.S.
5. Florida
The Sunshine State is the fifth-least dependent state on the federal government contributing $5.78 tax dollars for every $1 in federal aid it receives. As a popular tourist destination, Florida had the fourth largest GDP of all states in 2022.
