Tuesday, June 26, 2012

Which States In US Are Net Beneficiaries Of Federal Taxes and Federal Spending?

This article shows how US states compare with each other as recipients, or as providers of funds, via federal government spending outlays.  Rural states, especially in the South, are net recipients of federal funds that come from the richer states, primarily in the North and on the West Coast.  Ironically, the poor states that benefit most from federal spending are the strongest opponents of federal spending and progressive taxes that primarily affect the richer states.  This says a lot about the ability of individuals to make decisions that maximize their utility.

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