New York State Receives Dismal Return From Federal Tax Payments

(Bloomberg) -- A report card of sorts has been issued for congressional representatives.

The Rockefeller Institute of Government examined the distribution of federal budget receipts and expenditures by state to determine which states send more revenue to the federal government than they get back in spending. The biggest loser is New York, with northeastern brethren New Jersey, Massachusetts and Connecticut in the next three spots. Illinois rounds out the top five.

A good number of the deepest Republican states receive the most federal aid on a per capita basis. For example, Mississippi, Alabama, Louisiana, Kentucky and West Virginia have high poverty rates and thus receive disproportionately large shares of federal dollars.

States adjacent to the Capitol, Virginia and Maryland, are among the winners. The federal government spends more than $10,000 per person in Virginia compared with the amount its citizens pay in federal income taxes. In Maryland, citizens enjoy a $6,000 per capita surplus. Kentucky, home of Senate majority leader Mitch McConnell, also stands out, as it reaps $2.35 back from Washington for every $1 its citizens pay in federal tax.

There are 10 states where citizens get back less than $1 from the federal government for each $1 they spend in taxes.

To contact the reporter on this story: Alex Tanzi in Washington at atanzi@bloomberg.net

To contact the editor responsible for this story: Chris Middleton at cmiddleton2@bloomberg.net

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