April 21, 2006
Giving and receiving from the feds
The nonprofit Tax Foundation recently released information on how much states they paid to the federal government in taxes in 2004 compared to how much they receive from various federal programs. N.C. State University's Mike Walden says North Carolina did pretty good.
"Now this is a comprehensive look at all kinds of taxes paid in as well as all kinds of monies received back from the federal government, including things like Medicare, Medicaid and Social Security. And the 2004 numbers show that North Carolina's getting back $1.10 cents in federal government programs for every $1 in federal taxes we pay," says Walden, a professor with the College of Agriculture and Life Sciences.
"So are actually getting more back than we pay in. Ten years ago we were much worse. We only got back $.93 for every $1 we paid to the feds. So things have turned around.
"Now in terms of the top state getting back much more than they pay to the federal government: that honor goes to New Mexico. They get back $2 in federal spending for every $1 they spend in taxes. And state at the bottom of the list is New Jersey. They get back only $.55 in federal spending for every $1 of federal taxes that they pay."
Posted by deeshore at April 21, 2006 07:48 AM