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These numbers come up every few years, and it's usually the same states - for good reason. The title of this thread is incorrect. It's not welfare. Well, some of it is naturally. But rather, it's federal spending. And if you actually think about the states on the list, you can see why those states get money.
First of all, West Virginia and South Dakota are obvious. Senator Byrd is the first reason, and Senator Daschle the second. Alaska gets disproportionate amounts of money because of the numerous expensive military installations as related to the tax paying population. Arkansas = Clinton...and so on.
The web site actually states these issues, for those who bothered to go there.
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One factor affecting rankings is that federal spending on defense and other procurement dollars are often funneled to the states of powerful members of congress. Also, state governments can grab more federal grant money by manipulating their spending to comply with federal regulations.
Another factor is demography. States with more residents on Social Security, Medicare and other federal entitlements tend to rank high. Similarly, high spending levels in Virginia, Maryland and the District of Columbia are explained by the predominance of federal employees.
Finally, states with higher incomes per capita—such as Connecticut—pay higher federal taxes per capita thanks to the income tax's progressive structure, which increases federal taxes per dollar of federal spending received in return. |
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FLUSHED THE JOHNS!
Last edited by imokruok on Oct-18-2004 at 02:48
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