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<< Unions Vie to Organize Hospitals | Main | Wolfowitz v. Turkish Democracy >> August 04, 2003Bush States Are Spending HogsHere's a basic issue on taxation and spending. The politics is not about how much to spend-- since conservatives love spending on military bases and roads -- or how much to tax -- since conservatives support all sorts of regressive taxes and fight cuts that go to the working poor. No, the issue is what kinds of spending and which Congressional districts and states get the money. And the reality is that the real deficit spending in the country is in Bush states, where far more is spent there by the federal government than tax revenue is generated. Here's the irony. So-called "welfare states" like California and New York more than pay their way in the federal system. In fact, the surplus taxes they pay subsidize conservative states like Arizona, Mississippi, Idaho and other states that consistently vote to cut spending that benefits the states paying the taxes, while increasing spending on their own services-- all while not paying their fair share. See this press release by the Tax Foundation on their new report, "Federal Taxing and Spending Benefit Some States, Leave Others Footing the Bill." The full report is here. Despite "aid" after 911, New York state is still getting only 85 cents in spending back for every dollar in taxes it sends to the federal government. And New Jersey, still reeling from the effects of 911 itself, only gets back 62 cents of every dollar it sends. Instead, spending on security and economic recovery in those states is used to subsidize "red states" like Alabama, Oklahoma, South Carolina and other free-loading states that bemoan welfare spending even as they collect their checks each year. You might suspect that this imbalance is solely because states like New York or New Jersey have higher per capita incomes, so they are paying more taxes on equal federal spending. If that was all that was going on, that might just be solid redistribution of wealth from richer states to poor ones-- although that still the kind of policy denounced as "welfare" by the conservatives benefitting from it. But it's more than that. On a per-citizen basis, many of those conservative states are not only paying less taxes per capita, they are receiving more spending. Check out page 9 in the main report for the expenditures per capita table. The average per capita spending by the government is $6326 per person. Some "red states" like Texas and Utah do receive less than that amount, but many like Kentucky, Mississippi and Wyoming receive much more. And large industrial "blue states" inevitably receive less. California receives only $5592 per capita for its citizens, New Jersey only $5509, Illinois only $5373. New York is doing better on getting aid than a few years ago, but still ranks only 26 on list of per capita receivers of aid. So the next time you hear about a "welfare state", think Bush-voting state. Posted by Nathan at August 4, 2003 01:17 PM Related posts:
Trackback PingsTrackBack URL for this entry: CommentsA lot of this is just the nature of rural states; a state like Wyoming or Alaska has lots of federal stuff (national parks, highways, post offices) and not a lot of people-- so spending is high there per capita. Of course, those states get the same two senators that New York and California-- which is a big reason this happens. The big liberal states contain the big liberal cities-- lots of people, not a lot of senators. Then again, retired GOP House Majority leader Dick Armey, when asked to explain why the disparity in per district spending between majority and minority districts went from something like less than ten million dollars with the Democrats in the majority to its current level of something like an astounding $500 million, said "to the victors go the spoils". Truly, in the American tradition of fair play and good sense. Posted by: the talking dog at August 4, 2003 07:23 PM The reasons this is the case: Either you stop subsidizing farming, give up the idea of putting bases on cheap land, decide to stop helping poor people, relocate poor people to Vermont, reduce expenditures on SS and Medicaid, or amend the constitution. I'm agreeable to several of these ideas. Posted by: Chad Peterson at August 5, 2003 03:06 PM The idea that this is about "poor states" getting more money works somewhat but doesn't fit the fact that states with large numbers of people on welfare don't get more cash. The farm aid and military bases argument does hold true, but just illustrates the point that "rugged individualists" in such states are just welfare recipients. The point is to achieve greater equity in helping poor folks in urban areas who are getting the short-end of budget cuts, even as the red state welfare queens live off taxes from states like New York and New Jersey that are having to cut aid for their own poor to send money to those other states. Posted by: Nathan Newman at August 5, 2003 03:20 PM The other problem with the "poor states" argument is that it doesn't account for spending changes made by the Republicans. The argument is essentially that Congress is spending on stuff--farm subsidies, military bases, welfare--that the Democrats would also spend on, so the fact that recipients tend to live in Republican districts is just coincidence. But in the 1995 budget, the last passed by a Democratic Congress, both Republican- and Democrat-represented districts received an average of about $3.9 billion in federal spending. The $612 million edge that Republican districts now enjoy has arisen entirely under Republican Congresses, which shifted spending toward programs that benefit Republican districts. Maybe a lot of this was ideological; in other words, programs that Republicans think are worthwhile just coincidentally happen to direct more funding to Republican districts. But whatever the cause, this isn't just some neutral phenomenon that would have happened whoever was in charge. Posted by: J. J. Gass at August 5, 2003 07:16 PM I don't know where Chad lives, but here in expensive old California, we got tons of military bases. Some of them are near expensive land, but it isn't like the military actually bought the land. Posted by: McDruid at August 6, 2003 03:46 AM Chad, For the record, NJ (a geographically small state) has 5 active military installations, not including the NG and ANG. Ft. Dix Add to that several major Coast Guard installations. Posted by: Clownshoes at August 6, 2003 11:35 AM The pattern definitely fits for the South. With some notable exceptions, the region is conservative and was Bush territory in 2000. It also has the highest number of military bases per capita (56% of U.S. troops are stationed in the South), and the South's military contractors rake in a disproportionate share of federal money (around 45% of contracts). Similarly, a disproportionate share of farm subsidies go South -- 75-80% of which go to corporate agribusiness, not family farms. Key point here being that it's not ordinary Southern people who are "welfare queens" (although there is lots of poverty) -- it's the big corporate players taking the cash, all while funding right-wing politicians that preach "fiscal constraint." So blaming entire states/regions isn't very helpful, but blaming the corporate looters and pointing out the political contradictions can be very useful. Thanks for posting this. Posted by: Chris Kromm at August 6, 2003 01:49 PM I appreciate Chris' attempt at looking at the Big Picture (like which individuals actually get the Federal largesse), and I hope that he recognizes Nathans hyperbolic/ironic use of the term welfare queen. But it's important to recognize the basic fact: the regular people of these states are the source of the electoral votes that got Bush to the Supreme Court. And since that election (long before it as well) we've heard all about "real America" where people just don't need the Federal government, and so they vote for allegedly anti-government Republicans. But those voters are living a lie. Until they face up to the reality that their regions, their states, their communities are welfare communities, they will continue to vote on the basis of lies. As recent events have shown, public lies in a democracy can have, let's say, negative consequences. Posted by: JRoth at August 6, 2003 02:09 PM This spending pattern seems counter-intuitive, but remember under Bush non-defense discretionary spending has SHOT UP. So despite the small-government talk of the red states and the Republicans, they really are just pork funnelers. The local Rep congressperson ran on a platform of bringing home the pork. Posted by: American Citizen at August 6, 2003 11:31 PM pissing Posted by: roma at August 24, 2004 07:00 AM Post a comment
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